A good synonym for elasticity would be
Select one:
a. responsiveness
b. volatility
c. stability
d. demand
e. stickiness
The correct answer and explanation is:
The correct answer is a. responsiveness.
Elasticity in economics refers to the degree to which the quantity demanded or supplied of a good changes in response to a change in price or other factors. The term responsiveness captures this idea well. When demand or supply is described as elastic, it means that consumers or producers react significantly to price changes. For example, if the price of a product increases and the quantity demanded decreases sharply, the demand for that product is considered elastic. On the other hand, if the quantity demanded doesn’t change much despite price fluctuations, the demand is inelastic.
Elasticity can be applied to different contexts, such as price elasticity of demand, which measures how sensitive demand is to changes in price, and income elasticity of demand, which reflects how demand changes when consumer income changes. In both cases, the concept hinges on responsiveness—whether demand or supply changes significantly when there is a shift in price or income.
Other options do not fit the definition of elasticity as well. Volatility refers to the degree of fluctuation in a variable, but it doesn’t necessarily describe how demand or supply reacts to changes. Stability suggests a lack of change, which contradicts the concept of elasticity. Demand is simply the desire for a good, not a measure of its responsiveness. Stickiness refers to resistance to change, which is the opposite of elasticity.
In summary, elasticity in economics is about responsiveness to changes in factors such as price, making “responsiveness” the best synonym in this case.