An individual is spending all his income on two goods X and Y. If a Rs. 2 increase in price of X, constancy in the price of Y leading to a no change in amount consumed in Y, what is the price elasticity of good X
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UoH 2016 Question 92: Demand theory and elasticity
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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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