Price elasticity of demand measures:
A)the responsiveness of the quantity demanded of a good to a change in income.
B)the responsiveness of the quantity demanded of a good to a change in consumers' preferences.
C)the responsiveness of the quantity demanded of a good to a change in the price of that good.
D)the reduction in the quantity demanded of a good when the price of that good is reduced.

Question

Quizplus · Accepted Answer

Price elasticity of demand measures the responsiveness of the quantity demanded of a good to a change in the price of that good. It tells us how much the quantity demanded will change if the price changes. A high price elasticity means that a small price change will result in a large change in quantity demanded, while a low price elasticity means that a price change will have little effect on quantity demanded.

Price Elasticity of Demand Measures