Learning Path
Question & Answer
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Price Elasticity
Income Elasticity
Cross Elasticity
Supply Elasticity
Understanding the Answer
Let's break down why this is correct
It is the measure that tells how quantity changes when price changes. Other options are incorrect because This option talks about how quantity changes when income changes, not price; This option looks at how buying one product changes when the price of another product changes.
Key Concepts
Price Elasticity of Demand
medium level question
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Deep Dive: Price Elasticity of Demand
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Definition
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price. It quantifies how much the quantity demanded will change in percentage terms in response to a one percent change in price. Elasticity values help determine the sensitivity of demand to price fluctuations.
Topic Definition
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price. It quantifies how much the quantity demanded will change in percentage terms in response to a one percent change in price. Elasticity values help determine the sensitivity of demand to price fluctuations.
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