Economists use elasticity as a tool to measure
A) the relationship between people's attitudes and their income
B) the relationship between people's willingness to supply a good and their willingness to demand that good
C) people's sensitivity to changes in price or income
D) the effect of changes in supply on people's willingness to demand goods
E) the effect of changes in supply on the government's ability to tax

Question

Quizplus · Accepted Answer

Elasticity in economics measures how sensitive the quantity demanded or supplied of a good or service is to a change in price or income. It does not directly measure attitudes, willingness, or government tax policies.

Economists Use Elasticity as a Tool to Measure