Question

Because elasticity is a units-free measure of the responsiveness of the quantity demanded of a good or service to a change in its price, _______.

A. elasticity is equal to the negative of the slope of the demand curve
B. elasticity is equal to the slope of the demand curve
C. we can compare the responsiveness of the same good when quantity is measured in different units, or we can compare across different goods
D. elasticity is dependent on the units in which the variable is measured

Answer 1

Elasticity is a measure of the responsiveness of quantity demanded to price changes and is calculated by dividing the percentage change in quantity by the percentage change in price.

Step-by-step explanation:

Elasticity is a units-free measure of the responsiveness of the quantity demanded of a good or service to a change in its price. It is a percentage change in quantity demanded (or supplied) divided by the percentage change in price. Option C is correct because elasticity allows us to compare the responsiveness of the same good when quantity is measured in different units, or we can compare across different goods.