GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Results of making things whose values and limitations do not change the price of goods and services they produce
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Price at which buyers and sellers agree to trade in a free market
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Measure of the responsiveness of demand and supply of a good or service to an increase or decrease in its price.
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things needed to create goods or services
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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: -The income elasticity of demand reflects the responsiveness of demand to changes in income. It is the percentage change in quantity demanded at a specific price divided by the percentage change in income, ceteris paribus.
Detailed explanation-3: -Price elasticity of demand is a measurement of the change in consumption of a product in relation to a change in its price. A good is perfectly elastic if the price elasticity is infinite (if demand changes substantially even with minimal price change).