If demand of the commodity changes with the change in price, it is known as ________.

price elasticity

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income elasticity

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cross elasticity

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none of the above

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Solution

The correct option is A price elasticity
If demand of the commodity changes with the change in price, it is known as price elasticity. For example if the demand of cars falls with the change in price, it is known as price elasticity as demand responded to the price change.

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If demand of the commodity changes with the change in price, it is known as ________.

The correct option is A price elasticityIf demand of the commodity changes with the change in price, it is known as price elasticity. For example if the demand of cars falls with the change in price, it is known as price elasticity as demand responded to the price change.

The correct option is A price elasticity
If demand of the commodity changes with the change in price, it is known as price elasticity. For example if the demand of cars falls with the change in price, it is known as price elasticity as demand responded to the price change.