________ refers to a measure of the sensitivity of demand to changes in price.
A) Price elasticity
B) A demand curve
C) Price-value equation
D) Marginal utility
E) Income elasticity of demand

Question

Quizplus · Accepted Answer

Price elasticity is a measure of the responsiveness of demand to changes in price. It calculates the percentage change in quantity demanded for a specific percentage change in price. If the resulting value is greater than 1, demand is considered elastic, meaning that small changes in price lead to significant changes in demand. If the value is less than 1, demand is considered inelastic, meaning that changes in price have little effect on demand.

________ Refers to a Measure of the Sensitivity of Demand