ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Price elasticity of demand for goods is higher in the long term compared to the short term.
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Price elasticity of demand for goods is higher in the short term compared to the long term.
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Price elasticity of demand for goods is the same in the short term or long term.
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A goods needs to have a price elasticity of demand higher than status symbol goods.
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Detailed explanation-1: -The correct answer is option d-elasticity is equal to the slope of the demand curve.
Detailed explanation-2: -Which of the following statements about the relationship between the price elasticity of demand and revenue is TRUE? If demand is price inelastic, then increasing price will decrease revenue.
Detailed explanation-3: -The correct option is (a) If the price elasticity of demand is greater than 1, total revenue and price changes move in opposite directions. If the PED is greater than 1, a percentage change in price causes a larger percentage change in demand. So, if the price is increased, the percentage fall in demand will be larger.
Detailed explanation-4: -Answer and Explanation: The correct answer is: c. Elasticity of demand decreases as one goes down the demand curve.