A measure of sensitivity of demand in relation to changes in price is
A) a demand curve.
B) a prestige graph.
C) marginal analysis.
D) price elasticity of demand.
E) quantity elasticity.

Question

Quizplus · Accepted Answer

Price elasticity of demand measures the percentage change in quantity demanded in response to a percentage change in price. It indicates the degree of responsiveness of the quantity demanded to a change in the price of a product or service.

A Measure of Sensitivity of Demand in Relation to Changes