66. Elasticity measures Select one: O a. The slope of a demand curve O b. The inverse of the slope of a demand curve. Oc Sensitivity of price to a change in quantity. O d. The percentage change in one variable in response to one present increase in another variable.

66. Elasticity measures Select one: O a. The slope of a demand curve O b. The inverse of the slope of a demand curve. Oc Sensitivity of price to a change in quantity. O d. The percentage change in one variable in response to one present increase in another variable.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter5: Elasticity

Section: Chapter Questions

Problem 26CTQ: What is the relationship between price elasticity and position on the demand curve? For example, as...

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Concept explainers

Elasticity of Demand and Supply

The elasticity of demand and supply are two important concepts of microeconomics. The elasticity of demand measures the responsiveness of consumers’ demands to the price change, changes in income of consumers, and changes in the price of the related goods. Similarly, the elasticity of supply refers to the proportionate change in the quantity supplied due to the proportionate change in the price. In other words, it can be said that elasticity of supply measures how the quantity of supply changes when the price changes of that particular product.

Question

66. Elasticity measures
Select one:
O a. The slope of a demand curve
O b. The inverse of the slope of a demand curve.
Oc. Sensitivity of price to a change in quantity.
O d. The percentage change in one variable in response to a
one present increase in another variable.

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