The elasticity of demand is used to
A) determine if consumers will or will not buy a product.
B) measure how responsive consumers are to a change in price.
C) determine in what direction the demand curve shifts if income changes.
D) find the market equilibrium.
E) determine if a change in price results in a shortage or a surplus.

Question

Quizplus · Accepted Answer

The elasticity of demand measures the responsiveness of consumers to a change in price. It determines how much the quantity demanded will change if the price of a product goes up or down.

The Elasticity of Demand Is Used to