Elasticity of resource demand is measured by the
A) absolute change in resource quantity demanded divided by the absolute change in resource price.
B) percentage change in resource quantity demanded divided by the percentage change in resource price.
C) absolute change in resource price divided by the absolute change in resource quantity demanded.
D) percentage change in resource price divided by the percentage change in resource quantity demanded.

Question

Quizplus · Accepted Answer

Elasticity of resource demand is measured as a percentage change in the quantity of the resource demanded divided by the percentage change in the resource price. This is generally referred to as the price elasticity of demand for the resource. Option B is the only one that represents this measurement.

Elasticity of Resource Demand Is Measured by the