What is the best definition of elasticity in economics?

Elasticity of supply measures how the amount of a good changes when the producer hires more employees.

Elasticity of supply measures how the amount of a good changes when the producer uses new materials.

Elasticity of demand measures how the amount of a good changes when its price goes up or down.

Elasticity of demand measures how the amount of a good changes when its distribution expands.

Question

Social Studies

Kaylin

8 December, 14:38

What is the best definition of elasticity in economics?

Elasticity of supply measures how the amount of a good changes when the producer hires more employees.

Elasticity of supply measures how the amount of a good changes when the producer uses new materials.

Elasticity of demand measures how the amount of a good changes when its price goes up or down.

Elasticity of demand measures how the amount of a good changes when its distribution expands.

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Keegan Mccall · Answer 1

The third is the best definition: Elasticity of demand measures how the amount of a good changes when its price goes up or down. Elasticity of demand is a measure used to show the responsive of a market as prices increase of decrease.

Beckett Gibson · Answer 2

I believe the answer is: Elasticity of demand measures how the amount of a good changes when its price goes up or down.

If the increase in price for a product reduce the overall demand of the demand, we considered that product to be 'elastic'

But, if the increase of the price does not any reduction in the demand, we consider the product to be 'inelastic' (this usually happen for basic need products such as water or oil)