Question
Suppose A consumes only 2 goods X &Y such that A
exhausts all the income. Ceteris Paribus, if the price of X rises and the price elasticity of X is 1.2 then what is the impact on the consumption of good YSolution
Solution When the price of X rises, quantity demanded for X will fall and because the price elasticity of demand is 1.2; the total expenditure made on the good will fall. So, the consumer will be left with more money income to spend on Y. Thus, quantity demanded of Y increases.
The iOS operating system is designed for which devices?
What does 'N' stand for in UMANG App?
What is the purpose of a firewall in computer networks?
Which protocol is related to e-commerce?
What type of malware locks a user's files and demands payment?
Which protocol is lightweight?
In LibreOffice Writer, which view shows all styles available?
What is the purpose of an intrusion detection system (IDS)?
Which command provides a bilingual environment?
What does cloud computing involve?
