The price elasticity of demand measures which of the following?
A) How responsive the quantity demanded is to changes in price.
B) The rate at which demand changes when price changes.
C) The slope of the demand curve.
D) The percentage-slope of the demand curve.
E) None of these correctly defines what price elasticity of demand measures.

Question

Quizplus · Accepted Answer

Price elasticity of demand measures how responsive the quantity demanded is to changes in price. It shows the extent to which a change in price affects the quantity demanded, and can be measured as the percentage change in quantity demanded divided by the percentage change in price. It is an important concept in economics for understanding consumer behavior and market dynamics.

The Price Elasticity of Demand Measures Which of the Following