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- Subject
- Supply and Demandeconomics-mcqs › supply-and-demand
- Published
- 29 May 2019
- Last updated
- 28 May 2026
Which term describes the responsiveness of the quantity demanded to changes in consumer income?
Multiple choice question for Supply and Demand. Select an option, then review the explanation below.
Explanation
Option A refers to price elasticity of demand, which measures how quantity demanded changes with price. Option B is cross-price elasticity, indicating demand change due to price changes of other goods. Option C is not a standard economic term. Option D, income elasticity of demand, correctly measures how demand varies as consumer income changes.
More Supply and Demand MCQs
Practice related questions from the same subject.
- 1.What is the typical shape of a demand curve?
- 2.What term describes a company earning profits beyond its normal profit level?
- 3.How does an increase in marginal cost affect output, and how does an increase in marginal revenue impact output?
- 4.Marginal revenue refers to the ________ resulting from producing an additional ________ of output.
- 5.What are firms generally assumed to do with their costs and profits?