ECONOMICS
DEMAND
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
degree of responsiveness of qty dd due to change in price of the same good
|
|
|
degree of responsiveness of qty dd due to change in price of a different good
|
|
|
degree of responsiveness of qty dd due to change in income
|
|
|
degree to which demand curve shifts
|
Detailed explanation-1: -This measure of responsiveness of quantity demanded when there is a change in price is termed as the Price Elasticity of Demand (PED). The result obtained from this formula determines the intensity of the effect of price change on the quantity demanded for a commodity.
Detailed explanation-2: -∴ Cross elasticity of demand is the degree of responsiveness of the demand for a commodity to a change in its price.
Detailed explanation-3: -PED = % Change in Quantity Demanded / % Change in Price The Price Elasticity of Demand is affected by many factors. 5 crucial factors among them are: Availability of goods, Price Levels, Income Levels, Time Period, and Nature of goods.
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: -Income Elasticity: Degree of responsiveness of a change in quantity demanded to a change in the income of the consumer.