BB 1st Year 1st Semister Micro-Economics-2012

Part-B
Q-9(a). What do you mean by elasticity of  demand? Distingush between price elasticity , income elasticity and cross elasticity of demand for a commodity .

Answer: 
Elasticity of demand or price elasticity demand shows the responsivness of quantity demanded due to change in price . In other woreds, the price elasticity of demande measures how much the quantity demanded of good changes in price changes.

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