Chapter 3 Elasticity of Demand and Supply

VERY SHORT ANSWER TYPE QUESTIONS 1. Define elasticity of demand.Ans: Elasticity of demand measures how much the quantity demanded of a good changes in response to a change in its price. 2. Define price elasticity of demand.Ans: Price elasticity of demand quantifies the responsiveness of the quantity demanded to changes in the price of a…

Chapter- 2 Demand, Supply and Market Equilibrium 

VERY SHORT ANSWER TYPE QUESTIONS 1. What is meant by demand?Ans: It’s the quantity of a good or service that consumers are willing and able to buy at various prices within a specific time. 2. Name any four determinants of demand.Ans: Income, price of related goods, consumer preferences, and expectations about the future. 3. State…

Unit 1 Basic Concept of Economic and Allocation of Resources 

VERY SHORT ANSWER TYPE QUESTIONS 1. What is economics?Ans: Economics studies how people make choices to fulfill their unlimited wants with limited resources. 2. Write the definition of economics in the words of Adam Smith.Ans: Adam Smith described economics as the study of how individuals and societies allocate their limited resources to satisfy their unlimited…