ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Price elasticity refers to the extent to which changes in price affect the demand for a product. In other words, it measures the responsiveness of consumers to changes in the price of a product. If a product is price elastic, a small change in price will result in a large change in the demand for that product.

Detailed explanation-2: -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-3: -That’s where the price elasticity of demand comes in. It is a measure of how sensitive, or responsive, consumers are to a change in price. For any given good or service, the price elasticity of demand measures how much the quantity demanded by consumers responds to a change in the price of that good or service.

Detailed explanation-4: -Income elasticity of demand is an economic measure of how responsive the quantity demanded for a good or service is to a change in income. The formula for calculating income elasticity of demand is the percentage change in quantity demanded divided by the percentage change in income.

Detailed explanation-5: -The price elasticity of demand evaluates the responsiveness of consumers to changes in the price of a product. In other words, it measures how the quantity demanded of a given good or service reacts to the price change. If the change in quantity is greater than the price change, we say the demand is elastic.