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 it complements .
Its substitute but not its complements .
It complements but not its substitutes
None of these
According to the law of demand , there is ________ relationship between price and quantity demand .
Positive
Negative
Inverse
__________ 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 elasticity of demand
Price elasticity of supply
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 .
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 change in quantity demanded / Percentage change in supply
__________ is a measure of the reponsiveness of demand to changes in income and involves demand curve shift .
Income elasticity of demand (YED)
Cross elasticity of demand( XED)
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
Unit elasticity
A virtual demand curve has :
Infinite elasticity
Zero elasticity
Varying elasticity
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 .
__________ are not necessary essential .
Necessities
Luxuries
Complementary
Giffen
