ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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supply elasticity of price
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price elasticity of supply.
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demand elasticity of price
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price elasticity of demand.
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Detailed explanation-1: -The price elasticity of demand is the percentage change in the quantity demanded of a good or service divided by the percentage change in the price. The price elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price.
Detailed explanation-2: -When percentage change in quantity equals percentage change in price, magnitude of elasticity of demand is equal to 1. This is the situation of unit elasticity.
Detailed explanation-3: -The price elasticity of demand is defined as the percentage change in quantity demanded divided by the percentage change in price. If demand is elastic, it means the quantity demanded changes by a relatively larger amount than the price change.
Detailed explanation-4: -The price elasticity of demand measures the responsiveness of quantity demanded to changes in price; it is calculated by dividing the percentage change in quantity demanded by the percentage change in price.
Detailed explanation-5: -Cross-price elasticity of demand is the percentage change in the quantity of good A that is demanded as a result of a percentage change in the price of good B.