ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Price of Good A
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Price of Good B
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Supply
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Income
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Detailed explanation-1: -∴ Cross elasticity of demand is the degree of responsiveness of the demand for a commodity to a change in its price.
Detailed explanation-2: -The degree to which the quantity demanded changes with respect to price is called the elasticity of demand.
Detailed explanation-3: -The cross elasticity of demand is an economic concept that measures the responsiveness in the quantity demanded of one good when the price for another good changes.
Detailed explanation-4: -Elasticity of supply measures the degree of responsiveness of quantity supplied to a change in own price of the commodity. It is also defined as the percentage change in quantity supplied divided by percentage change in price. Was this answer helpful?
Detailed explanation-5: -The degree of responsiveness of demand to the changes in determinants of demand (Price of the commodity, Income of a Consumer, Price of related commodity) is known as elasticity of Demand.