Question : Income elasticity of demand measures the responsiveness of quantity demanded to changes in:

Option 1: Price.

Option 2: Income.

Option 3: Population.

Option 4: Advertising expenditure.

Question : Which of the following is a characteristic of demand elasticity?

Option 1: It measures the responsiveness of quantity demanded to changes in price.

Option 2: It measures the responsiveness of quantity supplied to changes in price.

Option 3: It measures the responsiveness of demand to changes in income.

Option 4: It measures the responsiveness of demand to changes in the cost of production.

Question : Cross elasticity of demand measures the responsiveness of quantity demanded to changes in:

Option 1: Price of a substitute good.

Option 2: Price of a complementary good.

Option 3: Income.

Option 4: Both a) and b).

Question : Cross elasticity of demand measures the responsiveness of the quantity demanded of one good to changes in the:

Option 1: Price of a complementary good

Option 2: Price of a substitute good

Option 3: Income of consumers

Option 4: Production cost of the good

Question : The percentage change in _______ divided by the percentage change in _______ is the income elasticity of demand.

Option 1: The quantity demanded; income

Option 2: Income; the price

Option 3: Income; the quantity demanded.

Option 4: The price; income