Question

What is elasticity of demand?

a. the degree to which changes in a good's price affect the quantity demanded by consumers
b. the degree to which changes in the prices of related goods affects the quantity supplied
c. the degree to which consumer expectations affect the quantity of goods supplied and demanded
d. the degree to which the size of the market affects the quantity of good supplied and demanded?

Answer 1

I believe the answer is A

Answer 2

I believe the answer is: a. the degree to which changes in a good's price affect the quantity demanded by consumers

The goods that is not influenced by price would be considered as inelastic, this usually includes all goods that are considered to be basic necessities such as food and water.

While the goods that easily influenced by price would be considered as elastic, usually include all tertiary products such as cars or electronics.