Which of these formulas represents an elastic response of y with respect to x, which is also called x-elasticity of y ?

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The question asks which formula represents the elastic response of y with respect to x, also known as the x-elasticity of y.
Option A: dx/dy. This expression is the reciprocal of dy/dx and represents a slope inverse with respect to x as a function of y, not the elasticity measure. It does not capture the percent-change response of y to percent-change in x, so it’s not the elasticity.
Option B: (dy/y)/(dx/x). This is precisely the definition of x-elasticity of y: the ratio of the relative (percent) change in y to the relative (percent) change in x. It encodes how y responds to small proportional changes in x and is the standard elasticity form. 
Option C: (dx/x)/(dy/y). This is the reciprocal of the elasticity defined in Option B, effectively the inverse relative change, which does not describe the elastic response of y to x in standard terms. It would correspond to the inverse elasticity if interpreted literally, but it’s not the conventional x-elasticity of y.
Option D: dy/dx. This is the ordinary (instantaneous) rate of change of y with respect to x, a slope, not the elasticity measure which uses percent changes in both variables. It misses the normalization by the variables themselves that elasticity requires.

In summary, the elasticity concept hinges on relative changes and is captured by the ratio of relative changes, which is exactly what Option B provides. The other expressions represent either slopes or inverses of elasticity, not the x-elasticity of y.

ERMCPS5350_003_2025_3 - INTRO TO QUANTITATIVE RISK MANAGEMENT 11. Quiz for Class 11

Which of these formulas represents an elastic response of y with respect to x, which is also called x-elasticity of y ?

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If a policymaker wants to raise revenue by taxing goods while minimizing the deadweight losses, they should look for goods with _ elasticities of demand and _ elasticities of supply. (Fill in the blanks.)

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ERMCPS5350_003_2025_3 - INTRO TO QUANTITATIVE RISK MANAGEMENT 11. Quiz for Class 11

Which of these formulas represents an elastic response of y with respect to x, which is also called x-elasticity of y ?

查看解析

登录即可查看完整答案

类似问题

If a policymaker wants to raise revenue by taxing goods while minimizing the deadweight losses, they should look for goods with _________ elasticities of demand and _________ elasticities of supply. (Fill in the blanks.)

What does it mean that elasticity equals escape?

The formula for all types of elasticity calculate follow a pattern:In the denominator, you put the Blank 1 Question 1[select: , initial change, reaction] in terms of percentage change.In the numerator, you put the Blank 2 Question 1[select: , reaction, initial change] in terms of percentage change.

The cross-price elasticity of a complement is ______. The income elasticity of an inferior good is ______.

更多留学生实用工具

希望你的学习变得更简单

If a policymaker wants to raise revenue by taxing goods while minimizing the deadweight losses, they should look for goods with _ elasticities of demand and _ elasticities of supply. (Fill in the blanks.)

The cross-price elasticity of a complement is . The income elasticity of an inferior good is .