ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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percentage change in quantity demanded divided by percentage change in price of a good.
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percentage change in quantity demanded of one good divided by percentage change in price of a different good.
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percentage change in quantity sold divided by percentage change in buyers’ incomes.
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percentage change in quantity supplied divided by percentage change in price of a good.
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Detailed explanation-1: -The cross-price elasticity of demand is calculated using two variables, namely, the quantity demanded of one good and the price of related good. It is calculated as the ratio between the percentage change in quantity demanded of one good to the percentage change in the price of related good.
Detailed explanation-2: -Also called cross-price elasticity of demand, this measurement is calculated by taking the percentage change in the quantity demanded of one good and dividing it by the percentage change in the price of the other good.
Detailed explanation-3: -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-4: -Cross elasticity of demand refers to the way that changes in the price of one good can affect the quantity demanded of another good. This relationship can vary depending on whether the two goods are substitutes, complements, or unrelated to each other.
Detailed explanation-5: -(New Quantity – Initial Quantity) / Initial Quantity. (New Price – Initial Price) / Initial price. Cross-price Elasticity of Demand (XED) = Percentage Change in Quantity Demanded of Product A / Percentage Change in Price of Product B. 12-Oct-2022