Price elasticity looks at
A)The law of demand and the law of supply.
B)How much the quantity demanded or supplied changes after a change in price.
C)The degree to which price changes with a change in the quantity demanded or supplied.
D)Why the law of supply and the law of demand are untrue.

Question

Quizplus · Accepted Answer

Price elasticity measures the responsiveness of the quantity demanded or supplied to a change in price. It looks at how much the quantity changes in relation to the change in price. This is important information for businesses when making pricing decisions. The law of demand and supply are fundamental principles of economics and are not questioned by price elasticity. Option C is incorrect as price elasticity measures the change in quantity demanded or supplied due to a change in price, not the change in price due to a change in quantity demanded or supplied. Option D is incorrect as it contradicts the fundamental principles of economics.

Price Elasticity Looks at