a-1, b-2, c-3, d-4
a-4, b-3, c-1, d-2
a-3, b-4, c-2, d-1
a-2, b-4, c-1, d-3
Answer is Right!
Answer is Wrong!
The correct answer is: A. a-1, b-2, c-3, d-4
- Price elasticity of demand measures the responsiveness of the quantity demanded of a good to a change in its price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price.
- Income elasticity of demand measures the responsiveness of the quantity demanded of a good to a change in income. It is calculated as the percentage change in quantity demanded divided by the percentage change in income.
- Cross elasticity of demand measures the responsiveness of the quantity demanded of a good to a change in the price of another good. It is calculated as the percentage change in quantity demanded of the good divided by the percentage change in the price of the other good.
- Taste elasticity of demand measures the responsiveness of the quantity demanded of a good to a change in consumer tastes. It is calculated as the percentage change in quantity demanded divided by the percentage change in tastes.
In the given question, List-I gives the four types of elasticities of demand, while List-II gives the definitions of the four types of elasticities of demand. The correct match is as follows:
- a. Responsiveness of demand to change in price : Price elasticity of demand
- b. Responsiveness of demand to change in tastes : Taste elasticity of demand
- c. Responsiveness of demand to change in income : Income elasticity of demand
- d. Responsiveness of demand to change in price of related goods : Cross elasticity of demand