Economists use the concept of ________ to measure how one economic variable, such as quantity, responds to a change in another economic variable, such as price.

Question

Quizplus · Accepted Answer

Economists use the concept of elasticity to measure how one economic variable responds to a change in another economic variable. Elasticity measures the percentage change in one variable in response to a percentage change in another variable. Specifically, price elasticity of demand measures the percentage change in quantity demanded in response to a percentage change in price.

Economists Use the Concept of ________ to Measure How One