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

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.

Victoria Freites · Accepted Answer

Final Answer : C, Explanation :  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:

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.

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