ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Income Elasticity of Demand
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Cross Elasticity of Demand
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Price Elasticity of Demand
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None of the above
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Detailed explanation-1: -Formula to measure cross elasticity of demand: E= Percentage change in demand of commodity X/ Percentage change in price of commodity Y. Q.
Detailed explanation-2: -The growth rate, or percentage change in quantity demanded, would be the change in quantity demanded [Math Processing Error] divided by the average of the two quantities demanded: [Math Processing Error] ( 103 + 100 ) 2 .
Detailed explanation-3: -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-4: -Definition: Cross elasticity (Exy) tells us the relationship between two products. it measures the sensitivity of quantity demand change of product X to a change in the price of product Y. Price elasticity formula: Exy = percentage change in Quantity demanded of X / percentage change in Price of Y..