GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Price elasticity of demand provides
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Technical change in the value
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A technical change in the cost of product
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A technical change in the goodwill of the firm
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A measure of the responsiveness of the quantity demanded to changes in the price of the product, holding constantthe values of all other variables in the demand function
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Explanation:
Detailed explanation-1: -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-2: -The price elasticity of demand is a measure of the responsiveness of quantity demanded to a change in price. divided by the percentage change in price.
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