Elasticity is a measure of
A) how quickly a particular market reaches equilibrium.
B) the change in income associated with increased education.
C) the responsiveness of one variable to a change in another variable.
D) the effect of an increase in the number of consumers in a particular market.
E) how quickly expansion can take place in an economy.

Question

Quizplus · Accepted Answer

Elasticity refers to the responsiveness of one variable to a change in another variable. It can be measured by calculating the percentage change in one variable in response to a percentage change in another variable. For example, price elasticity of demand measures how much the quantity demanded of a product changes in response to a change in its price.

Elasticity Is a Measure of