ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Rigidity.
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Seasonal change.
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Uncertainty.
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Responsiveness.
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Detailed explanation-1: -Elasticity refers to the measure of the responsiveness of quantity demanded or quantity supplied to one of its determinants.
Detailed explanation-2: -Elasticity is a measure/estimator of sensitivity or responsiveness. It measures how a variable responds to a change in some other variable. So, there are two variables-the one bringing the change is known as the independent variable and the variable that responds to the change is known as a dependent variable.
Detailed explanation-3: -: the quality or state of being elastic: such as. : the capability of a strained body to recover its size and shape after deformation : springiness. : resilience sense 2. : the quality of being adaptable.
Detailed explanation-4: -Cross Elasticity of Demand, also represented as XED, is an economic concept that measures the sensitiveness of quantity demanded of one good (X) when there is a change in the price of another good (Y), and that’s why it is also referred to as Cross-Price Elasticity of Demand.
Detailed explanation-5: -if ED < 1, then demand is inelastic If demand is relatively responsive-in percentage terms-to changes in price, it is “elastic” (ED is greater than one). If ED is less than one, the amount demanded is relatively unresponsive-in percentage terms-to changes in price.