Elasticity is expressed as a function (f) that relates changes in price (p) with changes in demand volume (Vp).

Question

Quizplus · Accepted Answer

This statement is true. Elasticity is a measure of the responsiveness of demand or supply to changes in price, and it is expressed as a function that relates changes in price (p) with changes in demand volume (Vp). The formula for price elasticity of demand is typically expressed as:

Elasticity (E) = (% change in quantity demanded / % change in price)

This formula shows the relationship between changes in price and changes in quantity demanded, and it is used to calculate the degree of price sensitivity of a particular product or service. Therefore, elasticity is indeed expressed as a function that relates changes in price to changes in demand volume.

Elasticity Is Expressed as a Function (F) That Relates Changes