6 Questions
What is elasticity?
Elasticity refers to the ability of a material to return to its original shape after being stretched or compressed.
Why is elasticity important?
Elasticity is important because it allows materials to absorb and release energy, making them useful in a variety of applications such as clothing, engineering, and sports equipment.
Give an example of elasticity in everyday life.
An example of elasticity in everyday life is the stretchiness of rubber bands, which can be stretched and then return to their original shape.
What is the concept of elasticity in economics and how is it measured?
Elasticity in economics refers to the responsiveness of quantity demanded or supplied to changes in price, income, or other factors. It is measured using the price elasticity of demand, price elasticity of supply, income elasticity of demand, and cross-price elasticity of demand.
What are the determinants of price elasticity of demand and how do they affect consumer behavior?
The determinants of price elasticity of demand include availability of substitutes, proportion of income spent on the good, necessity vs. luxury, and time. These determinants affect consumer behavior by influencing how sensitive consumers are to changes in price.
How does elasticity impact producer decision-making and market outcomes?
Elasticity influences producer decision-making by indicating the responsiveness of quantity supplied to changes in price or other factors. In competitive markets, elasticity affects equilibrium price and quantity, consumer surplus, producer surplus, and total welfare.
Test your knowledge of elasticity with this quiz! Explore the concept of elasticity, its significance, and discover real-life examples.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
