Wheat is sold in world markets, usually priced in terms of bushels. In the market for wheat, the price elasticity of demand for wheat would be expressed as
A) the number of bushels of wheat sold.
B) the number of whatever currency is used in purchasing the wheat.
C) the number of dollars spent on wheat.
D) a unitless number.

Question

Quizplus · Accepted Answer

The elasticity of demand is a unitless measure that expresses the percentage change in quantity demanded in response to a percentage change in price. Therefore, the price elasticity of demand for wheat would be expressed as a unitless number. The other options are either units of measurement (bushels, currency) or a monetary value (dollars spent), which would not be a measure of elasticity on their own.

Wheat Is Sold in World Markets, Usually Priced in Terms