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Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
elasticity is simply a measure of how [...] one variable is to change in the value of another variable
Answer
sensitive

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
elasticity is simply a measure of how [...] one variable is to change in the value of another variable
Answer
?

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
elasticity is simply a measure of how [...] one variable is to change in the value of another variable
Answer
sensitive
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elasticity is simply a measure of how sensitive one variable is to change in the value of another variable

Original toplevel document

4.3. Income Elasticity of Demand: Normal and Inferior Goods
In general, elasticity is simply a measure of how sensitive one variable is to change in the value of another variable. Quantity demanded of a good is a function not only of its own price, but also consumer income. If income changes, the quantity demanded can respond, so the analyst needs to understand

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