When studying how some event or policy affects a market,elasticity provides information on the
A)direction of the effect on the market.
B)magnitude of the effect on the market.
C)speed of adjustment of the market in response to the event or policy.
D)number of market participants who are directly affected by the event or policy.

Question

Quizplus · Accepted Answer

Elasticity provides information on the magnitude of the effect on the market, specifically how much the quantity demanded or supplied changes in response to a change in price or other factors. It does not provide information on the direction, speed of adjustment, or number of market participants affected.

When Studying How Some Event or Policy Affects a Market,elasticity