Home » Past Questions » Agricultural Science » The degree of responsiveness of demand to change in the price of goods or produc...

The degree of responsiveness of demand to change in the price of goods or produc...


Question

The degree of responsiveness of demand to change in the price of goods or produce is referred to as

Options

A) Relative Elasticity of demand

B) Unit Elasticity of demand

C) Price Elasticity of demand

D) Perfect Elastic demand

The correct answer is C.

Explanation:

Price Elasticity of demand is the degree of responsiveness of demand to changes in the price of goods or produce. Demand for most farm products is inelastic. People can consume only so much then they are satiated. Even if price drops they will not buy much more. When demand is inelastic a drop in price that spurs more quantity being sold results in lower revenue and profit for the producer.


More Past Questions:


Discussion (2)

  • price elasticity of demand

    Reply
    Like
  • Price Elasticity of demand is the degree of responsiveness of demand to changes in the price of goods or produce. Demand for most farm products is inelastic. People can consume only so much then they are satiated. Even if price drops they will not buy much more. When demand is inelastic a drop in price that spurs more quantity being sold results in lower revenue and profit for the producer.

    Reply
    Like