ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Neutral goods are those goods that have gone on sale. When the demand for one good moves in the same direction a the price f another god, the two are complements. When goods are substitutes, which of the following occurs? The demand for one good moves in the same direction as the price of the other good.
Detailed explanation-2: -Answer and Explanation: For a normal good, when income increases, the demand for a good increases and when income drops, demand drops.
Detailed explanation-3: -An elastic demand is one in which the change in quantity demanded due to a change in price is large. An inelastic demand is one in which the change in quantity demanded due to a change in price is small. If the formula creates an absolute value greater than 1, the demand is elastic.
Detailed explanation-4: -Answer and Explanation: The correct answer is option d-elasticity is equal to the slope of the demand curve.