For the demand function of good , , the sum of the own-price elasticity, cross-price elasticity and income elasticity of demand would be:
Tap an option to check your answer.
2 marksMicroeconomicsDemand theory and elasticityProperties of demand and aggregationHardabout 2 min
UGC-NET 2024 Question 23: Demand theory and elasticity
Answer and worked solution
Checking your account…
Plain-text version
For the demand function of good x, Q_d = f(Pₓ, P_y, M), the sum of the own-price elasticity, cross-price elasticity and income elasticity of demand would be: (A) one (B) zero (C) two (D) n where n > 1
Also written as: For the demand function of good x, Q_d = f(P_x, P_y, M), the sum of the own-price elasticity, cross-price elasticity and income elasticity of demand would be:
Demand theory and elasticity has come up 161 times in 7 exams since 2004.
What this question tests
This question is on Properties of demand and aggregation, part of Demand theory and elasticity in Microeconomics.
Homogeneity and adding-up of demand, and when individual demands combine into market demand.
TestStop has 8 past-paper questions on this subtopic.
Similar questions from other papers
- Goods are substitutes when an increase in price of one leads to _ of other commodity.
- Let e, R, and p represent own price elasticity of demand, total revenue, and price, respectively for a good. If (∂ R)/(∂ p)<0, then
- If the demand function is Q = 100 - 2P, when P = 25; then elasticity of demand will be:
- The decision by consumers to buy larger quantities of a good at each possible price can not be caused by
- The demand function is given as log Q = log A + 0.5log P, where Q is quantity, P is the unit price of the good and A is a positive real number. The own price elasticity…
Question from the UGC-NET 2024 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.