ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the means by which total revenue is measured
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a measure in the responsiveness to a change is price
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the stretchy-ness of a rubber band
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None of the above
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Detailed explanation-1: -Price elasticity measures the responsiveness of the quantity demanded or supplied of a good to a change in its price. It is computed as the percentage change in quantity demanded-or supplied-divided by the percentage change in price.
Detailed explanation-2: -Elasticity refers to the measure of the responsiveness of quantity demanded or quantity supplied to one of its determinants. Goods that are elastic see their demand respond rapidly to changes in factors like price or supply.
Detailed explanation-3: -A measure of the responsiveness of quantity demanded to changes in the price of a related good is known as cross elasticity of demand. Cross elasticity of demand is calculated by dividing the proportionate change of quantity demanded of one commodity by the proportionate change of price of another commodity.
Detailed explanation-4: -Elasticity is an economic measure that will help measure the variable sensitivity concerning change with the other variable. It is the change made in quantity demanded concerning the changes in some other factors. It is the degree associated with the change made in demand and amount regarding the income or prices.
Detailed explanation-5: -If a price change for a product causes a substantial change in either its supply or its demand, it is considered elastic. Generally, it means that there are acceptable substitutes for the product.