ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Price elasticity of demand measures the change in consumption of a good as a result of a change in price. It is calculated by dividing the percent change in consumption by the percent change in price.

Detailed explanation-2: -The price elasticity of demand measures the responsiveness of quantity demanded to changes in price; it is calculated by dividing the percentage change in quantity demanded by the percentage change in price.

Detailed explanation-3: -Price elasticity measures the way consumers, individuals or producers respond to changes in price with change in demand or supply of a product.

Detailed explanation-4: -Income Elasticity of Demand Represented by the ratio between percentage change in quantity demanded and percentage change in income: If the percent change in the quantity demanded is greater than the percent change in consumer income, the demand is said to be income elastic, or responsive to changes in consumer income.

Detailed explanation-5: -A good that has a high demand elasticity for an economic variable means that consumer demand for that good is more responsive to changes in the variable. Conversely, a good with low demand elasticity means that regardless of changes in an economic variable, consumers don’t adjust their spending patterns.