SSC
GENERAL ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which economic concept is defined as the measure of how responsive consumers are to a price change?
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consumer expectations
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consumer taste
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decreasing marginal utility
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elasticity of demand
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Explanation:
Detailed explanation-1: -Price elasticity of demand is an economic measure of the sensitivity of demand relative to a change in price. The measure of the change in the quantity demanded due to the change in the price of a good or service is known as price elasticity of demand.
Detailed explanation-2: -The arc price elasticity of demand measures the responsiveness of quantity demanded to a price. It takes the elasticity of demand at a particular point on the demand curve, or between two points on the curve. on a graph. outcome whether price falls or rises.
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