• A. 0.80 B. 1.25 ✓ C. 2.00 D. 10.00   The answer to the question is: B. 1.25 The price elasticity of supply measures the responsiveness of the quantity supplied of a good to a change in its price. It…

• A. unitary B. infinity C. fairly elastic D. perfectly inelastic ✓   The answer to the question is: D. perfectly inelastic If the quantity supplied remains constant regardless of changes in price, the supply elasticity is considered perfectly inelastic. This means that…

• A. One B. positive ✓ C. negative D. zero   The answer to the question is: B. positive If commodities X and Y are substitutes, their cross elasticity of demand will be positive. This is because substitutes are goods that can be…

• The elasticity of demand is a measure of the responsiveness of the quantity demanded of a commodity to a change in its price. It is calculated using the following formula: Elasticity of Demand = Percentage Change in…

• It is the degree of responsiveness of demand for one commodity as a result of a change in the price of another. It is the measure of effect of a change in demand for one commodity as…

• “It is the degree of responsiveness of demand for goods to a change in income”. It is the extent to which demand changes as a result of increase or decrease in income. Additional income is mostly spent…