Asked by Kailey Schroeder on Apr 25, 2024
Verified
An elasticity of 2 would be considered
A) elastic.
B) inelastic.
C) unit elastic.
D) undefined.
Elasticity
A measure in economics of how the quantity demanded or supplied of a good changes in response to changes in price or other factors.
Considered Elastic
A description for goods or services whose demand or supply is significantly responsive to changes in price.
Unit Elastic
Describes a demand or supply scenario where a percentage change in price leads to an equal percentage change in quantity demanded or supplied.
- Differentiate between elastic, inelastic, and unit-elastic demand.
Verified Answer
ZK
Zybrea KnightMay 02, 2024
Final Answer :
A
Explanation :
Elasticity of 2 means that for every 1% change in price, the quantity demanded or supplied will change by 2%. This indicates a fairly responsive and elastic market, where consumers or producers are sensitive to changes in price.
Learning Objectives
- Differentiate between elastic, inelastic, and unit-elastic demand.