Elasticity Is

question 6

Multiple Choice

Elasticity is

• A)a measure of how much buyers and sellers respond to changes in market conditions.
• B)the study of how the allocation of resources affects economic well-being.
• C)the maximum amount that a buyer will pay for a good.
• D)the value of everything a seller must give up to produce a good.

---

Definitions:

Profit

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Selling Price

The amount at which an item or service is sold to the customer.

Outstanding Balance

The amount of money owed on a loan or credit account that has not yet been repaid.

Invoice

A document indicating a transaction between a buyer and a seller, listing the goods or services provided along with their prices and the total amount due.