Given a utility function , own price elasticity is
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UoH 2010 Question 59: Demand theory and elasticity
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Given a utility function U = X₁X₂, own price elasticity is (A) 0 (B) 1 (C) -1 (D) -2
Also written as: Given a utility function U = X_1X_2, own price elasticity is
Demand theory and elasticity has come up 161 times in 7 exams since 2004.
What this question tests
This question is on Price elasticity of demand, part of Demand theory and elasticity in Microeconomics.
How responsive quantity is to price, at a point, along a linear curve, and for constant-elasticity demand.
TestStop has 41 past-paper questions on this subtopic; the nearest in year are below.
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