Which of the following best describes economic elasticity? A) The fixed nature of supply in response to demand B) An unchanging consumer preference regardless of price C) The respo... Which of the following best describes economic elasticity? A) The fixed nature of supply in response to demand B) An unchanging consumer preference regardless of price C) The responsiveness of quantity demanded or supplied to price changes D) The ability of the market to grow
Understand the Problem
The question is asking for the definition of economic elasticity and which option describes it best among the given choices. The focus is on the relationship between supply and demand in response to price changes.
Answer
The responsiveness of quantity demanded or supplied to price changes.
The responsiveness of quantity demanded or supplied to price changes.
Answer for screen readers
The responsiveness of quantity demanded or supplied to price changes.
More Information
Economic elasticity measures how changes in price influence the quantity of goods demanded or supplied. A key aspect of frontier economic analysis and critical in predicting market dynamics.
Tips
A common mistake is to confuse elasticity with inelasticity. Inelastic situations involve little to no change in quantity with price changes.
Sources
- What Is Elasticity in Finance; How Does It Work (With Example)? - investopedia.com
- Elasticity – Microeconomics - LOUIS Pressbooks - louis.pressbooks.pub
- Price elasticity of demand and price elasticity of supply (article) - khanacademy.org
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