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Question
Price elasticity of demand shows:
Options
Response of demand to change in price
Response of price to change in demand
Degree of response of price to change in demand
Degree of response of demand to change in price
Solution
Degree of response of demand to change in price
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RELATED QUESTIONS
Find the odd word
Types of elasticity of demand -
Distinguish between:
Income Elasticity of Demand and Cross Elasticity of Demand
Assertion (A): A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity.
Reasoning (R): Changes in consumers income leads to a change in the quantity demanded.
Assertion (A): A change in quantity demanded of one commodity due to a change in the price of other commodity is cross elasticity.
Reasoning (R): Changes in consumers income leads to a change in the quantity demanded.
Define the term price elasticity of demand.
If commodity X and Y are complementary goods , what will be the cross elasticity of demand?
If prices of salt and coffee increase by the same proportion, will their quantity demanded behave in the same manner? Explain by giving reasons.
With the help of a diagram, explain the Relatively elastic demand curve.
What will be the effect of 10 percent rise in price of a good on its demand if price elasticity of demand is −1?
How is the price elasticity of demand of a commodity is affected by the number of its substitutes.
