ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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0.263
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2.73
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0.38
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2.63
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Detailed explanation-1: -Inelastic demand occurs when changes in price cause a disproportionately small change in quantity demanded. For example, a good with inelastic demand might see its price increase by 30%, but demand falls by only 10% as a result.
Detailed explanation-2: -Income elasticity of demand is an economic measure of how responsive the quantity demanded for a good or service is to a change in income. The formula for calculating income elasticity of demand is the percentage change in quantity demanded divided by the percentage change in income.
Detailed explanation-3: -The price elasticity of demand is calculated as the percentage change in quantity divided by the percentage change in price.
Detailed explanation-4: -Elastic Demand Note that a change in price results in a large change in quantity demanded. An example of products with an elastic demand is consumer durables.