The Elasticity Approach to Measuring the Sensitivity of Quantity Demanded

question 22

Multiple Choice

The elasticity approach to measuring the sensitivity of quantity demanded to changes in price differs from using the slope because the elasticity approach calculates the ratio of the

• A)absolute change in price to the absolute change in quantity demanded
• B)absolute change in quantity demanded to the percentage change in price
• C)absolute change in quantity demanded to the percentage change in price.
• D)percentage change in quantity demanded to the percentage change in price.
• E)average change in price to the average change in quantity demanded.

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Definitions:

Extraocular Muscles

The six muscles that surround the eye, controlling its movements and allowing it to move in different directions.

Optic Nerves

The paired nerves that transmit visual information from the retina to the brain.

Pupil

The black circular opening in the center of the iris of the eye, which regulates the amount of light that enters the eye.

Iris

The colored part of the eye surrounding the pupil that controls the amount of light entering the eye by adjusting the size of the pupil.