When economists want to obtain a measure of the responsiveness of quantity demanded to changes in price, they use
A) the slope of the demand curve.
B) the price elasticity of demand.
C) the unit change in quantity demanded.
D) the cross-price elasticity of demand.

Question

Quizplus · Accepted Answer

The measure of the responsiveness of quantity demanded to changes in price is known as price elasticity of demand. It is calculated as the percentage change in quantity demanded divided by the percentage change in price. The slope of the demand curve only provides information about the direction and magnitude of the relationship between price and quantity demanded. The unit change in quantity demanded does not provide a measure of responsiveness, and cross-price elasticity of demand measures the responsiveness of quantity demanded of one good to changes in the price of another good.

When Economists Want to Obtain a Measure of the Responsiveness