__________ is a measure of the responsiveness of demand for one good to a change in the price of another good and involves demand curve shifts .
Cross price elasticity of demand (XED)
Price elasticity of demand (PED)
Unit elesticity of demand
Price elasticity of supply
PED =
Percentage change in quantity demanded / Percentage change in Price
Percentage change in demanded / Percentage change in supply
Percentage quantity demanded / Percentage change in Price
Percentage quantity demanded / Percentage change in demand
__________ is a measure of the responsiveness of demand to changes in income and involves demand curve shift .
Income elasticity of demand (YED)
Cross elasticity of demand( XED)
Cross elasticity of demand is :
Negative for complementary goods .
Negative for substitute goods
Unitary for inferior goods
None of these
The demand curve in the figure above illustrates a product whose demand has a price elasticity of demand equal to
Zero at all prices
Infinity
Once at all prices
A different amount at different prices .
Which of these measures the responsiveness of the quantity of one good demanded to an increase in the price of another goods .
Price elasticity
Income elasticity
Cross elasticity
If goods are complements , definitely their :
Cross elasticities are positive
Cross elasticities are negative
Income elasticities are negative
Price elasticities are negative
A virtual demand curve has :
Unit elasticity
Infinite elasticity
Zero elasticity
Varying elasticity
The cross elasticity of demand measures the responsiveness of the quantity demanded of a particular good to changes in the prices of
Its substitute and its complements .
Its substitute but not its complements .
It complements but not its substitutes
Demand is perfectly inelastic when:
Shift is the supply curve results in no change in price .
The good in question has perfect substitutes.
Shift of the supply curve results in no change in quantity demanded .
