ECONOMICS
ELASTICITY OF DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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3.1
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4
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2.3
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.1
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Detailed explanation-1: -The correct answer is b. In this question, when the price changes from 8 to 12, the quantity demanded changes from 110 to 90.
Detailed explanation-2: -a. Using the starting point method, what is the price elasticity of supply from a price of $4.00 to a price of $4.50 per iced coffee? 1.14 1.14 Correct, and supply is said to be price elastic Correct.
Detailed explanation-3: -What is the elasticity of supply, when price changes from Rs. 15 to Rs. 12 and supply change from 6 units to 5 units? a)0.77b)0.87c)0.833d)0.58Correct answer is option ‘C’.
Detailed explanation-4: -Given: Price of pens decreases from R20 to R19 and the Quantity demanded for pens increases from 5, 000 units to 10, 000 units. The price elasticity of demand(Ed) is 1.32, as the value of Ed is greater/more than 1 it implies that demand is elastic.