ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Answer and Explanation: The given statement The price elasticity of demand for a good measures the willingness of buyers of the good to buy less of the good as its price increases.is false. The Ed measures the magnitude of sensitivity of the change in ‘quantity demanded’ of a commodity to change in ‘price’.

Detailed explanation-2: -The arc price elasticity of demand measures the responsiveness of quantity demanded to a price. It takes the elasticity of demand at a particular point on the demand curve, or between two points on the curve. on a graph. outcome whether price falls or rises.

Detailed explanation-3: -Elasticity is an economic measure of how sensitive an economic factor is to another, for example, changes in price to supply or demand, or changes in demand to changes in income. Price elasticity of demand is an economic measurement of how the quantity demanded of a good will be affected by changes in its price.

Detailed explanation-4: -If demand for a product is price elastic and the price increases, total revenue will decrease. If demand for a product is price inelastic and the price decreases, total revenue will decrease.

Detailed explanation-5: -b) If demand is price elastic, then decreasing price will increase revenue.