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: -The price elasticity of demand is a term used in microeconomics to quantify and measure the consumer responsiveness in terms of demand for a product after the change in the product’s own price.
Detailed explanation-2: -Elasticity is really measuring consumer response to a price change. The less time you have to respond to a price change in good, the more likely it is that you demand for the good is going to be inelastic.
Detailed explanation-3: -The correct answer is option d-elasticity is equal to the slope of the demand curve.
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: -Elasticity of demand measures the responsiveness of the quantity demanded of the goods to a change in the price of the goods. It is calculated by diving the proportionate change in quantity demand by proportionate change in price level.