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Andrews [41]
3 years ago
9

12. What is elasticity of demand?

Social Studies
1 answer:
swat323 years ago
5 0

Answer:

<h3>(4) A measure of how consumers react to a  change in price.</h3><h3 />

Explanation:

  • The elasticity of demand is simply the change in demand due to change in the price of a product.
  • As we know demand is proportionate to the price of a product, when products are produced at a lower  price, there is an increase in the demand.Similarly, if products are produced at a higher price, the demand also falls.
  • The elasticity of demand is a measure of how consumers react to a  change in price. It helps consumers to understand the market price of a commodity and thereby, reacts according to the price.
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