📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    âš¡ Month End Offer - Flat 52% Off On All Courses! Enroll Now âš¡
    00:00:00 AM Left

    Question

    Elasticity of demand measures the

    A responsiveness of the quantity demanded to changes in the price Correct Answer Incorrect Answer
    B responsiveness of demand to change in supply of goods Correct Answer Incorrect Answer
    C change in price due to change in demand Correct Answer Incorrect Answer
    D change in demand due to change in tastes of consumer Correct Answer Incorrect Answer

    Solution

    The price elasticity of demand measures the responsiveness of the quantity demanded to changes in the price. Demand is inelastic if it does not respond much to price changes, and elastic if demand changes a lot when the price changes. Necessities tend to have inelastic demand.

    Practice Next
    More Sale Questions
    ask-question