Which of the following statements about elasticity measures is true?
A) Elasticities are always positive values
B) Values that are close to zero indicate greater responsiveness
C) Values that are further from zero indicate greater responsiveness
D) Values that are further from zero indicate less responsiveness

Question

Quizplus · Accepted Answer

Elasticity measures indicate the degree of responsiveness or sensitivity of one variable to a change in another variable. The value of elasticity can be positive or negative, depending on whether the variables are positively or inversely related. However, the magnitude of elasticity is always positive, and values that are further from zero indicate greater responsiveness or sensitivity to change. Therefore, Choice C is the correct statement about elasticity measures.

Which of the Following Statements About Elasticity Measures Is True