The responsiveness of quantity demanded of a good to changes in its price is the
A) cross elasticity of demand.
B) price elasticity of supply.
C) income elasticity.
D) price elasticity of demand.

Question

Quizplus · Accepted Answer

The responsiveness of quantity demanded of a good to changes in its price is measured by the price elasticity of demand. It measures the percentage change in quantity demanded in response to a 1% change in the price of the good. A high price elasticity means that a small change in price leads to a large change in quantity demanded, indicating that the good is highly sensitive to price changes.

The Responsiveness of Quantity Demanded of a Good to Changes