Which term is used to denote the responsiveness of quantity demanded or supplied to changes in various determinants such as income or prices of related goods?

Which term is used to denote the responsiveness of quantity demanded or supplied to changes in various determinants such as income or prices of related goods?

• A. Price Elasticity
• B. Elastic
• C. Inelastic
• D. Price Floor

Answer: (B)

Elasticity is the concept that measures how much quantity demanded or supplied responds to changes in determinants such as income or the prices of related goods. It captures the degree of responsiveness across different triggers, including price changes (price elasticity of demand or supply), income changes (income elasticity of demand), and the effect of another good’s price (cross-price elasticity). The term to denote this responsiveness is elasticity; “elastic” describes the degree of responsiveness (an adjective) rather than naming the concept itself. Since the question points to income and prices of related goods, elasticity is the appropriate, general term.

Elasticity is the concept that measures how much quantity demanded or supplied responds to changes in determinants such as income or the prices of related goods. It captures the degree of responsiveness across different triggers, including price changes (price elasticity of demand or supply), income changes (income elasticity of demand), and the effect of another good’s price (cross-price elasticity). The term to denote this responsiveness is elasticity; “elastic” describes the degree of responsiveness (an adjective) rather than naming the concept itself. Since the question points to income and prices of related goods, elasticity is the appropriate, general term.