Ask Question
25 May, 02:59

When there is a decrease in the price of a goodthe demand curve will shift to the right. The elasticity of demand will determine the degree to which quantity demanded falls. The elasticity of demand will determine the degree to which quantity demanded rises. The demand curve will shift to the left?

+5
Answers (1)
  1. 25 May, 03:28
    0
    Answer: The elasticity of demand will determine the degree to which quantity demanded rises.

    Explanation:

    Acc. to the law of demand, demand for a normal good is negatively related to its price. When price of the good falls, quantity demanded rises.

    Price elasticity of demand shows us the magnitude of change in quantity demanded to a change in the price of the good.

    So, when price falls, elasticity will show us by the degree to which quantity demanded rises.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “When there is a decrease in the price of a goodthe demand curve will shift to the right. The elasticity of demand will determine the degree ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers