The most commonly used measures of elasticity are:
A) income elasticity of demand and price elasticity of supply.
B) price elasticity of demand and price elasticity of supply.
C) cross-price elasticity of demand and cross-price elasticity of supply.
D) price elasticity of demand and cross-price elasticity of supply.

Question

Quizplus · Accepted Answer

The most commonly used measures of elasticity in economics are price elasticity of demand and price elasticity of supply. Price elasticity of demand measures the responsiveness of quantity demanded to changes in the price of the good, while price elasticity of supply measures the responsiveness of quantity supplied to changes in the price of the good. These measures are important for understanding market behavior, consumer and producer behavior, and government policy. While income elasticity of demand and cross-price elasticity of demand are also useful measures, they are not as commonly used as price elasticity of demand and supply.

The Most Commonly Used Measures of Elasticity Are