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.

Question

Lewis

Business

18 January, 16:59

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.

+1

Answers (1)

Know the Answer?

Ty · Answer 1

Elasticity is a measure of how much buyers and sellers respond to changes in market conditions.

Explanation:

Elasticity is a measure of a variable's responsiveness to a variation in another variable, most generally this consciousness is the variation in price applicable to fluctuations in other factors. It is predominantly practiced to evaluate the shift in consumer interest as a consequence of a variety in a good or service's price.

A product is supposed to be elastic if the quantity requirement of the product evolves drastically when its price rises or drops. Conversely, a product is deemed to be inelastic if the volume requirement of the product varies very little when its value alternates.