What is the best definition of elasticity in economics?

Elasticity of supply measures how the amount of a good changes when the producer hires more employees.

Elasticity of supply measures how the amount of a good changes when the producer uses new materials.

Elasticity of demand measures how the amount of a good changes when its price goes up or down.

Elasticity of demand measures how the amount of a good changes when its distribution expands.

Question

Princess Hernandez

Social Studies

1 May, 19:03

What is the best definition of elasticity in economics?

Elasticity of supply measures how the amount of a good changes when the producer hires more employees.

Elasticity of supply measures how the amount of a good changes when the producer uses new materials.

Elasticity of demand measures how the amount of a good changes when its price goes up or down.

Elasticity of demand measures how the amount of a good changes when its distribution expands.

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Morgan Romero · Answer 1

The third is the best definition: Elasticity of demand measures how the amount of a good changes when its price goes up or down. Elasticity of demand is a measure used to show the responsive of a market as prices increase of decrease.