In Measuring the Sensitivity of Demand,the

question 77

Multiple Choice

In measuring the sensitivity of demand,the

• A)price and income elasticities refer to movements along the demand curve;other elasticities refer to shifts of the entire demand curve
• B)price and cross-price elasticities analyze movements along the demand curve;other elasticities refer to shifts of the entire demand curve
• C)income and cross-price elasticities refer to movements along the demand curve;price elasticity refers to shifts of the entire demand curve
• D)price elasticity refers to movements along the demand curve;income and cross-price elasticities refer to shifts of the entire demand curve
• E)income elasticity refers to movements along the demand curve;other elasticities refer to shifts of the entire demand curve

---

Definitions:

Marginal Cost

The increase in total production costs from making one additional unit of a product or service.

Producing Unit

An individual entity, such as a factory or company, involved in the production of goods or services.

Marginal Revenue

The additional income received from selling one more unit of a good or service.

Selling Unit

A specific quantity or configuration of a product that is made available for sale to consumers.