SSC
GENERAL ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The formula for calculating elasticity of demand is:
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The % change in price over the % change in quantity demanded
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The % change in quantity demanded over the % change in price
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The change in price over the change in quantity demaned
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The change in quantity demanded over the change in price
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Explanation:
Detailed explanation-1: -The price elasticity of demand is the percentage change in the quantity demanded of a good or service divided by the percentage change in the price. The price elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price.
Detailed explanation-2: -Income elasticity of demand refers to the sensitivity of the quantity demanded for a certain good to a change in the real income of consumers who buy this good. The formula for calculating income elasticity of demand is the percent change in quantity demanded divided by the percent change in income.
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