The ratio of the percentage change in a dependent variable to the percentage change in an independent variable, all other things unchanged, is:
A) total revenue.
B) production possibilities.
C) elasticity.
D) slope.

Question

Quizplus · Accepted Answer

This is the definition of elasticity, which measures the responsiveness of one variable to changes in another. The ratio of percentage changes is used to calculate elasticity.

The Ratio of the Percentage Change in a Dependent Variable