Asked by
Jason Lawrence
on Dec 11, 2024
Verified
Why do economists use the concept of elasticity in addition to measurement of the slope of the demand curve?
A) Mathematical equations are favored over graphical analysis.
B) Elasticities are independent of the units of measure.
C) The concept of elasticity can be used in other areas of economics, whereas the slope of the demand curve is only useful in demand analysis.
D) These terms are interchangeable, but elasticity has the more professional sound.
Elasticity
An economic measure of how responsive the quantity demanded or supplied of a good or service is to a change in price.
Demand Curve
A graphical representation that shows the relationship between the price of a product and the quantity of the product that consumers are willing and able to purchase at various prices.
- Comprehend the principle of price elasticity of demand and the factors influencing it.
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Learning Objectives
- Comprehend the principle of price elasticity of demand and the factors influencing it.