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Which of these questions is the best example of elasticity? What is the least amount of...

Which of these questions is the best example of elasticity?

What is the least amount of goods a supplier can produce without upsetting the customers?
How will a change in consumer behavior affect the overall consumer experience?
How much will a change in price or quantity impact consumer and producer behavior?
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Homework Answers

Answer #1

Since the elasticity of demand can be defined as the measurement of the degree of the responsiveness of the quantity demand due to the change in the price level.

Since the elasticity of supply can be defined as the measurement of the degree of the responsiveness of the quantity supplied due to the change in the price level.

Ed= % change in the quantity demand /% change in the price

Es= % change in the quantity supplied /% change in the price

Since change in the price or quantity affect the elasticity, therefore it impacts consumer and producer behavior.

Hence it can be said that the best example of elasticity will be ;

How much will a change in price or quantity impact consumer and producer behavior.

Hence option third is the correct answer.

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