What does the price elasticity of demand measure?
A) the responsiveness of price to a change in quantity demanded
B) the responsiveness of quantity demanded to a change in price
C) the responsiveness of quantity demanded to a change in income
D) the responsiveness of quantity demanded to a change in quantity supplied

Question

Quizplus · Accepted Answer

The price elasticity of demand measures how much the quantity demanded of a good or service changes in response to a change in its price. Specifically, it measures the percentage change in quantity demanded relative to a percentage change in price. A high price elasticity of demand means that a small change in price leads to a large change in quantity demanded, while a low price elasticity of demand means that a change in price has little effect on quantity demanded.

What Does the Price Elasticity of Demand Measure