Economists use elasticity to measure the responsiveness of quantity to a change in price rather than the slope of the demand curve because elasticity is
A) independent of the units of measurement.
B) dependent on the units of measurement.
C) easier to calculate.
D) harder to calculate.
E) always negative whereas the slope is always positive.

Question

Quizplus · Accepted Answer

Elasticity is a unitless measurement, meaning it is independent of the units of measurement used for both price and quantity. This allows for easier comparison between different products and markets. In contrast, calculation of the slope of the demand curve involves using specific units of measurement for both price and quantity.

Economists Use Elasticity to Measure the Responsiveness of Quantity to a Change