Elasticity refers to
A) The ability of the demand curve to shift in and out
B) The degree by which the demand curve includes other markets
C) The responsiveness of quantity to changes in price
D) The rate that quality increases as prices increase

Question

Quizplus · Accepted Answer

Elasticity refers to how quantity demanded changes in response to a change in price. When demand is elastic, a small price increase results in a large decrease in quantity demanded, while when demand is inelastic, a price increase has little effect on the quantity demanded. Therefore, option C is the correct definition of elasticity.

Elasticity Refers to