Question
What does elasticity of demand measure?
a decrease in the quantity demanded
the amount of time consumers need to change their demand for a good
how buyers will cut back or increase their demand when price rises or falls
an increase in the quantity available
Answers
GPT-4o mini
Elasticity of demand measures **how buyers will cut back or increase their demand when price rises or falls**.
It assesses the responsiveness of the quantity demanded of a good or service to changes in its price. A higher elasticity indicates that consumers are more sensitive to price changes, while a lower elasticity suggests they are less sensitive.
It assesses the responsiveness of the quantity demanded of a good or service to changes in its price. A higher elasticity indicates that consumers are more sensitive to price changes, while a lower elasticity suggests they are less sensitive.