Price Elasticity of Demand Measures

question 4

Multiple Choice

Price elasticity of demand measures:

• A) the responsiveness of the quantity demanded of a good to a change in income.
• B) the responsiveness of the quantity demanded of a good to a change in consumers'
• Preferences.
• C) the responsiveness of the quantity demanded of a good to a change in the price of that good.
• D) the reduction in the quantity demanded of a good when the price of that good is reduced.

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Definitions:

Land Supply

Land supply refers to the total quantity of land that is available for use or development in a particular area.

Factor's Price

The cost of utilizing factors of production like labor, land, and capital in the process of manufacturing.

Factor's Marginal Product

The additional output that results from the use of one more unit of a production factor, holding other factors constant.

Factor Of Production

An input used in the production of goods or services, including labor, capital, land, and entrepreneurship.