Which of the following statements about elasticity measures is true?
A) Elasticities are always positive values.
B) Values that are close to zero indicate greater responsiveness.
C) Values that are further from zero indicate greater responsiveness.
D) Values that are further from zero indicate less elasticity.

Question

Quizplus · Accepted Answer

Values that are further from zero indicate greater responsiveness. Elasticity measures the responsiveness of one variable to changes in another variable. The further the elasticity measure is from zero (whether positive or negative), the greater the responsiveness of the variable to changes.

Which of the Following Statements About Elasticity Measures Is True