Question

Elasticity differs from the slope as a measure of responsiveness to changes in prices because:

a. elasticity changes depending on the currency prices are measured in, but this does not affect the slope.
b. percentage changes do not depend on the units of measurement, whereas the slope does.
c. elasticity is only useful for describing demand, but the slope is useful for describing demand and supply.
d. the slope is always negative, while elasticity is not.

Answer 1

B. percentage changes do not depend on the units of measurement, whereas the slope does.

Step-by-step explanation: