When price goes down, the quantity demanded goes up.Price elasticity measures:
A) how much the price goes down.
B) how much the quantity goes up.
C) how responsive the price change is in relation to the quantity change.
D) how responsive the quantity change is in relation to the price change.

Question

Quizplus · Accepted Answer

Price elasticity is a measure of how responsive the quantity demanded is in relation to a change in price. It indicates the magnitude of the change in quantity demanded in response to a change in price. Therefore, option D, which states that price elasticity measures the responsiveness of the quantity demanded in relation to the price change, is the correct choice.

When Price Goes Down, the Quantity Demanded Goes Up