The Ratio of the Change in the Equilibrium Level of Output

question 355

Multiple Choice

The ratio of the change in the equilibrium level of output to a change in some autonomous variable is the

• A) elasticity coefficient.
• B) multiplier.
• C) automatic stabilizer.
• D) marginal propensity of the autonomous variable.

---

Definitions:

Price Elasticity

Indicates the responsiveness of the quantity demanded or supplied of a good to a change in its price.

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity supplied by producers at that price.

Q₁Q₂ Range

Refers to the spectrum between two quantities, Q₁ and Q₂, often used to describe the range of output levels in economic analysis.

Elastic Supply

A situation where the quantity supplied of a good or service changes significantly when its price changes.