If supply and demand analysis is a measure of how, then elasticity is a measure of:
A) how much.
B) when.
C) why.
D) how quickly.

Question

Quizplus · Accepted Answer

Elasticity measures how much a change in one variable (such as price) affects another variable (such as quantity demanded or supplied). It shows whether an increase in price results in a large or small decrease in quantity demanded (or whether a decrease in price results in a large or small increase in quantity demanded) and helps to determine the sensitivity of consumers or producers to changes in price.

If Supply and Demand Analysis Is a Measure of How