Question : The quantity demanded of a good or service divided by the price change in percentage form the price elasticity of demand.
Option 1: The difference between the changes in the quantity required and the percent change in revenue.
Option 2: The difference between the percentage change in revenue and the percentage changes in the quantity requested.
Option 3: The % change in the amount demanded of a product divided by the percentage change in the quantity required of a good, a change in the cost of the item
Option 4: All of the above
Correct Answer: The % change in the amount demanded of a product divided by the percentage change in the quantity required of a good, a change in the cost of the item
Solution : It is the % change in the amount demanded of a product divided by the percentage change in the quantity required of a good, a change in the cost of the item. The term "price elasticity of demand" describes how quickly a market can adjust to changes in consumer demand. Hence c is the correct answer.
Question : The price elasticity of demand is calculated as the:
Question : The price elasticity of demand is calculated as the percentage change in:
Question : The percentage change in _______ divided by the percentage change in _______ is the income elasticity of demand.
Question : If the price elasticity of demand for a good is -0.5, then a 10% increase in price will result in a:
Question : Assertion: Elasticity of demand measures the responsiveness of quantity demanded to changes in price.
Reason: Elasticity of demand is calculated as the percentage change in quantity demanded divided by the percentage change in price.
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