Elasticity of demand is:
A)the same as the slope of the demand curve.
B)the change in price for a given change in quantity demanded.
C)measured in dollars.
D)a measure of the percentage change in quantity demanded for a given percentage change in price.

Question

Quizplus · Accepted Answer

Elasticity of demand is a measure of the responsiveness of the quantity demanded to a change in price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price. Therefore, it is measured in terms of percentage change, not in dollars. The slope of the demand curve may indicate whether the demand is elastic or inelastic, but it does not give a numerical value for elasticity of demand.

Elasticity of Demand Is