Elasticity measures:
A)whether a price increase causes quantity demanded to increase or decrease.
B)the strength of an economy's tendency to recover from recession.
C)the responsiveness of decision makers to changes in price, income, or other variables.
D)the profitability of investment in an industry.
E)the long-run price trends in an economy.

Question

Elasticity measures:​
A)whether a price increase causes quantity demanded to increase or decrease.
B)the strength of an economy's tendency to recover from recession.
C)the responsiveness of decision makers to changes in price, income, or other variables.
D)the profitability of investment in an industry.
E)the long-run price trends in an economy.

Quizplus · Accepted Answer

Elasticity measures how responsive decision makers are to changes in price, income, or other variables, indicating how much quantity demanded or supplied will change in response to changes in these factors.

Elasticity Measures:​

Elasticity Measures: