Answer to Question #219145 in Economics for Sizwe

Question

2. What does the price of elasticity of demand measure?
A. the responsiveness of the quantity demanded of a good to changes in the price of the good.
B. the slope of the demand curve.
C. how sensitive the quantity demanded of a good is to changes in income.
D. how sensitive the price is to changesin the quantity demanded.

3. A perfectly inelastic demand

3. You are told that the demand for Iwisa maize meal is more price elastic that the demand for all maize meal as a whole. Which of the following correctly explains this statement?
A. maize meal is a necessity.
B. Iwisa maize meal is a luxury product.
C. There are more substitutes for Iwisa maize meal than for maize meal as a whole.
D. There are fewer substitutes for Iwisa maize meal than for maize meal as a whole.

Answer 1

2.A. the responsiveness of the quantity demanded of a good to changes in the price of the good.

3.C. There is more substitutes for Iwisa maize meal than for maize meal as a whole.