_______ measures consumers' sensitivity to price changes.
A) Cross-price elasticity of demand
B) Price elasticity of demand
C) Income elasticity of demand
D) Competitive profit elasticity of demand
E) Inelastic demand price parity

Question

Quizplus · Accepted Answer

The price elasticity of demand measures the percentage change in quantity demanded of a product in response to a percentage change in its price. A higher price elasticity of demand indicates greater consumer sensitivity to price changes, while a lower price elasticity of demand indicates less sensitivity to price changes.

_______ Measures Consumers' Sensitivity to Price Changes