Output elasticity can be defined as the:
A) percentage change in output divided by the (equal) percentage change in all inputs.
B) change in output divided by the change in all inputs.
C) change in inputs divided by the change in output.
D) change in output divided by the change in one input.
E) percentage change in output divided by the (average) percentage change in all inputs.

Question

Quizplus · Accepted Answer

Output elasticity measures the percentage change in output resulting from a proportional (equal) percentage change in all inputs. It reflects how sensitive the output is to changes in inputs.

Output Elasticity Can Be Defined as The