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 one percent change in price.
D) the reduction in the quantity demanded of a good when the price is reduced.

Question

Quizplus · Accepted Answer

Price elasticity of demand measures the responsiveness of quantity demanded to a one percent change in price. It shows how sensitive consumers are to changes in price and helps businesses predict how changes in price will affect their revenue. Answers A, B, and D are not accurate descriptions of price elasticity of demand.

Price Elasticity of Demand Measures