Question

. Price elasticity of demand measures percentage change in quantity demanded of a good due

to percentage change in:

(a) Price of complementary goods (b) Price of the good

(c) Income of a consumer (d) Tastes of a consumer​

Answer 1

Answer:

(b) Price of the Good

Explanation:

Now, this is a really simple concept in microeconomics.

The formula to measure Price elasticity of Demand (PEd) =

% Change in Quantity Demanded

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% Change in Price of the particular good