6
practice examMultiple Choice

Practice Exam

Question 6 • Economics

What does elasticity measure in economics?

Answer
A
how the amount of a good changes when the producer hires more employees
B
how the amount of a good changes when its price goes up or down
C
how the amount of a good changes when the producer uses new materials
D
how the amount of a good changes when its distribution expands

Explanation

Elasticity measures how responsive the quantity of a good is to a change in price. For example, it describes how much the amount consumers buy changes when the price rises or falls. So the correct choice is “how the amount of a good changes when its price goes up or down.”

AI-written and checked against the verified answer.

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