The price elasticity of demand measures Select one: a. the extent to which deman

Question

The price elasticity of demand measures Select one: a. the extent to which demand increases as additional buyers enter the market. b. how much more of a good consumers will demand when incomes rise. c. buyers' responsiveness to a change in the price of a good. d. the movement along a supply curve when there is a change in demand. T

otal surplus Select one: a. can be used to measure a market's efficiency. b. is the sum of consumer and producer surplus. c. is the to value to buyers minus the cost to sellers. d. All of the above are correct.

Explanation / Answer

Answer1:

c)buyer's responsiveness to a change in the price of a good.(because price elasicity is the ratio of relative change in quantity demand to a relative change in price.it can help companies make better revenue projection and create accurate budgets to operate more efficiently.)

Answer:2

b.is the sum of consumer and producer surplus( because total surplus is known as economic surplus ,is the sum of consumer and producer surplus.consumer surplus is difference between its willingness to pay for that product and market price. where as,producer surplus is difference between its willingness to sell that product for market price.it plays a vital role in business to make critical decision.

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