ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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adaptability
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adjustment
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responsiveness
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reconciliation
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Detailed explanation-1: -What Is Meant by Elasticity in Economics? Elasticity refers to the measure of the responsiveness of quantity demanded or quantity supplied to one of its determinants. Goods that are elastic see their demand respond rapidly to changes in factors like price or supply.
Detailed explanation-2: -Elasticity can be described as elastic-or very responsive-unit elastic, or inelastic-not very responsive. Elastic demand or supply curves indicate that the quantity demanded or supplied responds to price changes in a greater than proportional manner.
Detailed explanation-3: -Responsiveness: In economics, responsiveness refers to the change in an economic variables that is a dependent variable due to the change in another economic variable that is the independent variable. Different terms are used to define the responsiveness of different economic variables.
Detailed explanation-4: -The greater the absolute value of the price elasticity of demand, the greater the responsiveness of quantity demanded to a price change.
Detailed explanation-5: -The price elasticity of demand is defined as the responsiveness of Quantity demanded to a change in price.