1% change
5% change
9% change
All of the above
Answer is Right!
Answer is Wrong!
The correct answer is: A. 1% change.
Elasticity is a measure of how much one variable responds to a change in another variable. It is commonly stated as a percentage change, such as “the demand for a product is elastic with respect to price, with an elasticity of -2.” This means that a 1% increase in price will lead to a 2% decrease in demand.
The other options are incorrect because they are not percentages. A 5% change or a 9% change would be examples of elasticity, but they are not the most common way to express it.