Elasticity measures:
A) the slope of a demand curve.
B) the inverse of the slope of a demand curve.
C) the percentage change in one variable in response to a one percent increase in another variable.
D) sensitivity of price to a change in quantity.

Question

Quizplus · Accepted Answer

Elasticity measures the percentage change in one variable in response to a one percent increase in another variable. It is not the slope of a demand curve (A) or the inverse of the slope of a demand curve (B). While D describes one type of elasticity (price elasticity of demand), it does not fully encompass the concept of elasticity.

Elasticity Measures