Which of the following is a major determinant of price el...
Which of the following is a major determinant of price elasticity of demand?
The price of the commodity
Availability of factors of production
The prices of factors of production
Income of the consumers
Correct answer is D
The Proportion of Consumer’s Income Spent:
An important determinant of the elasticity of demand is how much it accounts for in a consumer’s budget. In other words, the proportion of a consumer’s income spent on a particular commodity also influences the elasticity of demand for it. The greater the proportion of income spent on a commodity, the greater will be generally its elasticity of demand, and vice versa.
If the marginal utility of commodity is equal to its price, then ...
The law of diminishing marginal utility explains why ...
What is meant by labour supply? ...
Economic growth can be defined as ...
One benefit a country can derive from the extraction of crude oil is increase in? ...
The financial institution that specializes in risk spreading is called ...
An aspect of taxation that involves normative economics is the ...
Inflation caused by increase in demand can be curbed by ...
An increasing population might be of economic benefit to a country if ...