[amp_mcq option1=”The Law of Demand” option2=”The Law of Supply” option3=”Equilibrium Price” option4=”Elasticity of Demand” correct=”option4″]<\/p>\n
The correct answer is: D. Elasticity of Demand<\/strong><\/p>\n Elasticity of demand is a measure of how responsive the quantity demanded of a good is to a change in its price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price.<\/p>\n A demand curve is said to be elastic if the quantity demanded changes by a large percentage in response to a small percentage change in price. A demand curve is said to be inelastic if the quantity demanded changes by a small percentage in response to a large percentage change in price.<\/p>\n The law of demand states that, all other things being equal, the quantity demanded of a good will decrease as the price of the good increases. The law of supply states that, all other things being equal, the quantity supplied of a good will increase as the price of the good increases.<\/p>\n Equilibrium price is the price at which the quantity demanded of a good is equal to the quantity supplied of the good.<\/p>\n I hope this helps! Let me know if you have any other questions.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”The Law of Demand” option2=”The Law of Supply” option3=”Equilibrium Price” option4=”Elasticity of Demand” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-45971","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n