What does elasticity of demand measure?

Question

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

Answer 1

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.