Question

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.
D. the value of everything a seller must give up to produce a good

Answer 1

OPTION A

Step-by-step explanation:

In economics elasticity refers to the calculation of an empirical parameter's relative shift in reaction to a change in the other. It depicts how difficult it is for both distributor and customer to change their habits and replace another product, the power of an opportunity over options per the relative price of opportunities.

Elasticity could be measured as proportion of variation in magnitude in one parameter to change in magnitude in an other parameter if the latter variable has a substantive effect on the previous. In form of the algebra a more precise description is provided. This is a tool to measure one factor's sensitivity to variations in the other, correlative static.