ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price. It is computed as the percentage change in quantity demanded-or supplied-divided by the percentage change in price.

Detailed explanation-2: -The degree to which the quantity demanded changes with respect to price is called the elasticity of demand.

Detailed explanation-3: -∴ Cross elasticity of demand is the degree of responsiveness of the demand for a commodity to a change in its price.

Detailed explanation-4: -The degree of responsiveness of demand to the changes in determinants of demand (Price of the commodity, Income of a Consumer, Price of related commodity) is known as elasticity of Demand.

Detailed explanation-5: -The degree of price elasticity of demand ranges from zero to infinity. It can be equal to zero, less than one, greater than one and equal to unity.