Question

Elasticity is:_________ a. the product of the percentage change in two variables. b. the ratio of the percentage change in two variables. c. the sum of the percentage change in two variables. d. the difference of the percentage change in two variables.

Answer 1

Answer:

b. the ratio of the percentage change in two variables.

Explanation:

Elasticity of demand = percentage change in quantity demanded/ percentage change in price

Elasticity of supply = percentage change in quantity supplied/ percentage change in price

Income elasticity = percentage change in quantity demanded/ percentage change in income.

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