The price elasticity of demand is a units-free measure of the responsiveness of the ________ when all other influences on buying plans remain the same.
A)quantity demanded of a good to a change in the price of a substitute or complement
B)quantity demanded of a good to a change in income
C)quantity demanded of a good to a change in its price
D)price to a change in the quantity demanded of a good
E)quantity demanded of a good to a change in supply

Question

Quizplus · Accepted Answer

Price elasticity of demand measures the responsiveness of the quantity demanded of a good to a change in its price, while holding all other factors constant. Therefore, the correct answer is C.

The Price Elasticity of Demand Is a Units-Free Measure of the Responsiveness