The Responsiveness of Quantity Demanded of a Good to Changes

question 122

Multiple Choice

The responsiveness of quantity demanded of a good to changes in its price is the

• A) cross elasticity of demand.
• B) price elasticity of supply.
• C) income elasticity.
• D) price elasticity of demand.

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Definitions:

Normative Statement

An opinion or value judgment about what is desirable or how things ought to be, as opposed to what actually is.

Unemployment Benefits

Payments made by a government or authorized body to unemployed individuals, aiming to provide financial support during joblessness.

Outsourcing

The practice of hiring third parties to conduct services or produce goods that were traditionally performed by the company's own staff.

Positive Statement

An objective statement based on facts that can be tested and verified.