{"id":47774,"date":"2024-04-15T22:31:35","date_gmt":"2024-04-15T22:31:35","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=47774"},"modified":"2024-04-15T22:31:35","modified_gmt":"2024-04-15T22:31:35","slug":"a-measure-of-the-responsiveness-of-quantity-demanded-to-changes-in-the-price-of-a-related-good-is-known-as","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/a-measure-of-the-responsiveness-of-quantity-demanded-to-changes-in-the-price-of-a-related-good-is-known-as\/","title":{"rendered":"A measure of the responsiveness of quantity demanded to changes in the price of a related good is known as"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Cross Elasticity of Demand&#8221; option2=&#8221;Substitution Elasticity of Demand&#8221; option3=&#8221;Complementary Elasticity of Demand&#8221; option4=&#8221;Price Elasticity of Demand&#8221; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is: A. Cross Elasticity of Demand<\/p>\n<p>Cross elasticity of demand is a measure of the responsiveness of the quantity demanded of one good to a change in the price of another good. It is calculated as the percentage change in the quantity demanded of good A divided by the percentage change in the price of good B.<\/p>\n<p>A positive cross elasticity of demand indicates that the two goods are substitutes. This means that if the price of good B increases, consumers will demand more of good A, as it is now a relatively cheaper option.<\/p>\n<p>A negative cross elasticity of demand indicates that the two goods are complements. This means that if the price of good B increases, consumers will demand less of good A, as it is now a relatively more expensive option.<\/p>\n<p>Price elasticity of demand is a measure of the responsiveness of the quantity demanded of a good to a change in its own price. It is calculated as the percentage change in the quantity demanded divided by the percentage change in the price.<\/p>\n<p>A high price elasticity of demand indicates that consumers are very responsive to changes in price. This means that a small change in price will lead to a large change in quantity demanded.<\/p>\n<p>A low price elasticity of demand indicates that consumers are not very responsive to changes in price. This means that a large change in price will lead to a small change in quantity demanded.<\/p>\n<p>Substitution elasticity of demand is a measure of the responsiveness of the quantity demanded of a good to a change in the price of a substitute good. It is calculated as the percentage change in the quantity demanded of good A divided by the percentage change in the price of good B.<\/p>\n<p>A high substitution elasticity of demand indicates that there are many close substitutes for good A. This means that if the price of good A increases, consumers will easily switch to a substitute good.<\/p>\n<p>A low substitution elasticity of demand indicates that there are few close substitutes for good A. This means that if the price of good A increases, consumers will have a hard time finding a substitute good.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Cross Elasticity of Demand&#8221; option2=&#8221;Substitution Elasticity of Demand&#8221; option3=&#8221;Complementary Elasticity of Demand&#8221; option4=&#8221;Price Elasticity of Demand&#8221; correct=&#8221;option1&#8243;]<\/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-47774","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A measure of the responsiveness of quantity demanded to changes in the price of a related good is known as<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/a-measure-of-the-responsiveness-of-quantity-demanded-to-changes-in-the-price-of-a-related-good-is-known-as\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A measure of the responsiveness of quantity demanded to changes in the price of a related good is known as\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Cross Elasticity of Demand&#8221; option2=&#8221;Substitution Elasticity of Demand&#8221; option3=&#8221;Complementary Elasticity of Demand&#8221; option4=&#8221;Price Elasticity of Demand&#8221; correct=&#8221;option1&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/a-measure-of-the-responsiveness-of-quantity-demanded-to-changes-in-the-price-of-a-related-good-is-known-as\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T22:31:35+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"A measure of the responsiveness of quantity demanded to changes in the price of a related good is known as","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/a-measure-of-the-responsiveness-of-quantity-demanded-to-changes-in-the-price-of-a-related-good-is-known-as\/","og_locale":"en_US","og_type":"article","og_title":"A measure of the responsiveness of quantity demanded to changes in the price of a related good is known as","og_description":"[amp_mcq option1=&#8221;Cross Elasticity of Demand&#8221; option2=&#8221;Substitution Elasticity of Demand&#8221; option3=&#8221;Complementary Elasticity of Demand&#8221; option4=&#8221;Price Elasticity of Demand&#8221; correct=&#8221;option1&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/a-measure-of-the-responsiveness-of-quantity-demanded-to-changes-in-the-price-of-a-related-good-is-known-as\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T22:31:35+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/a-measure-of-the-responsiveness-of-quantity-demanded-to-changes-in-the-price-of-a-related-good-is-known-as\/","url":"https:\/\/exam.pscnotes.com\/mcq\/a-measure-of-the-responsiveness-of-quantity-demanded-to-changes-in-the-price-of-a-related-good-is-known-as\/","name":"A measure of the responsiveness of quantity demanded to changes in the price of a related good is known as","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-15T22:31:35+00:00","dateModified":"2024-04-15T22:31:35+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/a-measure-of-the-responsiveness-of-quantity-demanded-to-changes-in-the-price-of-a-related-good-is-known-as\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/a-measure-of-the-responsiveness-of-quantity-demanded-to-changes-in-the-price-of-a-related-good-is-known-as\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/a-measure-of-the-responsiveness-of-quantity-demanded-to-changes-in-the-price-of-a-related-good-is-known-as\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"mcq","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/"},{"@type":"ListItem","position":3,"name":"Economics","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/economics\/"},{"@type":"ListItem","position":4,"name":"A measure of the responsiveness of quantity demanded to changes in the price of a related good is known as"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/47774","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=47774"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/47774\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=47774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=47774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=47774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}