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Soal 39 Suppose the price of burgers increases from $2 to $3 each The degree to...

Soal 39 Suppose the price of burgers increases from $2 to $3 each The degree to which quantity demanded responds to this price increase depends on the Select one
a price elasticity of demand
b. income elasticity of demand.
c. the price elasticity of supply
d. cross elasticity of demand

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Answer #1

Option (a) is correct.

The degree of responsiveness of quantity demanded of a good to change in own price is measured by price elasticity of demand.

Income elasticity measures percentage change in quantity demanded due to percentage change in income. So, option (b) is wrong.

Price Elasticity of supply measures percentage change in quantity supplied due to percentage change in own price. So, option (c) is wrong.

Cross elasticity measures percentage change in quantity demanded of a good due to percentage change in price of related good. So, option (d) is wrong.

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