Elasticity is
A)a measure of how much buyers and sellers respond to changes in market conditions.
B)the study of how the allocation of resources affects economic well-being.
C)the maximum amount that a buyer will pay for a good.
D)the value of everything a seller must give up to produce a good.

Question

Quizplus · Accepted Answer

Elasticity refers to how responsive buyers and sellers are to changes in market conditions. It measures the extent to which the quantity demanded or supplied changes in response to a change in one of the factors that determine demand or supply. Therefore, option A is the correct answer. B, C, and D do not accurately depict the concept of elasticity.

Elasticity Is