Which term is defined as the measure of the responsiveness of quantity demanded or supplied to a change in one of its determinants?

Which term is defined as the measure of the responsiveness of quantity demanded or supplied to a change in one of its determinants?

• A. Price Elasticity
• B. Inelastic
• C. Elastic
• D. Price Floor

Answer: (C)

Elasticity is the measure of how much quantity demanded or supplied responds to a change in a determinant such as price or income. It is calculated as the percentage change in quantity divided by the percentage change in the determinant. When the determinant is price, the precise term is price elasticity of demand or price elasticity of supply. The word “elastic” describes the degree of responsiveness, but the measure itself is called elasticity (or price elasticity when referring to price).

Elasticity is the measure of how much quantity demanded or supplied responds to a change in a determinant such as price or income. It is calculated as the percentage change in quantity divided by the percentage change in the determinant. When the determinant is price, the precise term is price elasticity of demand or price elasticity of supply. The word “elastic” describes the degree of responsiveness, but the measure itself is called elasticity (or price elasticity when referring to price).