Price elasticity looks at
A)The law of demand.
B)How much quantity demanded changes after a change in price.
C)The degree to which price changes with a change in quantity demanded.

Question

Quizplus · Accepted Answer

Price elasticity is a measure of how sensitive the quantity demanded of a good is to a change in its price. It looks at the percentage change in quantity demanded for a given percentage change in price. Therefore, it is concerned with how much quantity demanded changes after a change in price. The law of demand is a basic principle of economics which states that as the price of a good or service increases, the quantity demanded decreases, and vice versa. The degree to which price changes with a change in quantity demanded is referred to as the slope of the demand curve (i.e. how steep or shallow it is).

Price Elasticity Looks at