Why Do Economists Use the Concept of Elasticity in Addition

question 102

Multiple Choice

Why do economists use the concept of elasticity in addition to measurement of the slope of the demand curve?

• A) Mathematical equations are favored over graphical analysis.
• B) Elasticities are independent of the units of measure.
• C) The concept of elasticity can be used in other areas of economics, whereas the slope of the demand curve is only useful in demand analysis.
• D) These terms are interchangeable, but elasticity has the more professional sound.

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Definitions:

Complements

Goods or services that are used together, where an increase in demand for one leads to an increase in demand for the other.

Quantity Supplied

The total number of goods or services that manufacturers are ready and can provide on the market at a particular price level.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specific period.

Supply Curve

A visual depiction showing the link between a product or service's price and the amount of it a supplier is prepared and capable of offering for sale.