The concept of elasticity is used to:
A)analyse how much the economy is capable of expanding
B)analyse supply and demand with greater precision
C)determine the level of government invention in the economy
D)calculate consumer credit purchases

Question

Quizplus · Accepted Answer

The concept of elasticity is used to analyse the responsiveness of supply and demand to changes in price or other factors. It helps to understand how much the quantity demanded or supplied will change with changes in price or income, and thus helps to make decisions related to production and pricing strategies.

The Concept of Elasticity Is Used To