The elasticity of demand measures:
A) whether consumers will buy more or less as the price increases.
B) how much less of a good or service consumers will buy when the price increases.
C) a supplier's estimate of market demand.
D) how consumers substitute across goods when the price of one good increases.

Question

Quizplus · Accepted Answer

Elasticity of demand specifically measures the responsiveness of the quantity demanded to a change in price, indicating how much less of a good or service consumers will buy when the price increases.

The Elasticity of Demand Measures