Elasticity is a useful tool in learning more about the character of demand. It depicts
A) the way to find market equilibrium
B) a ratio of percentage changes
C) how easily prices adjust to changing market (supply and demand) conditions
D) how price changes as quantity demanded changes
E) how consumers react to shifts in demand

Question

Quizplus · Accepted Answer

Elasticity measures the responsiveness of one variable to changes in another, specifically the ratio of percentage change in quantity demanded to percentage change in price.

Elasticity Is a Useful Tool in Learning More About the Character