The concept of price elasticity can be applied to:
A) demand, but not supply.
B) supply, but not demand.
C) both supply and demand.
D) neither supply nor demand.

Question

Quizplus · Accepted Answer

Price elasticity applies to both supply and demand. It measures the responsiveness of quantity demanded or supplied to a change in price. If the price elasticity of demand is high, it indicates that a small change in price will cause a large change in quantity demanded. If the price elasticity of supply is high, it indicates that a small change in price will cause a large change in quantity supplied.

The Concept of Price Elasticity Can Be Applied To