The Responsiveness of Quantity Demanded of a Good to Changes

question 377

Multiple Choice

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

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

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Definitions:

Lottery Winnings

Income received from winning lotteries, which is often subject to taxation.

Semiannual Payments

Payments made twice a year as part of a financial agreement, often seen in the context of bonds or loans.

Interest Rate

The percentage of the principal amount charged by a lender to a borrower for the use of assets, usually expressed as an annual rate.

Down Payment

An initial, upfront payment made for the purchase of an asset, with the balance of the price to be paid later.