The responsiveness (or percentage change) of quantity demanded of a commodity to one percentage change in its price is known asChoose one optionElasticity of demandLaw of demandLaw of supplyelasticity of supply
Question
The responsiveness (or percentage change) of quantity demanded of a commodity to one percentage change in its price is known asChoose one optionElasticity of demandLaw of demandLaw of supplyelasticity of supply
Solution
The correct answer is Elasticity of demand. This economic concept measures the change in quantity demanded in response to a change in price. If the price of a commodity increases by 1% and the quantity demanded decreases by 1%, then the commodity is said to have an elasticity of demand of 1.
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