To examine how responsive consumers are to price changes, economists measure:
A) the elasticity of demand.
B) mean household income.
C) median household income.
D) key economic indicators such as unemployment, inflation, and economic growth.

Question

Quizplus · Accepted Answer

The elasticity of demand measures how responsive consumers are to changes in price. It is a measure of the percentage change in quantity demanded divided by the percentage change in price. A higher elasticity of demand indicates that consumers are more responsive to price changes.

To Examine How Responsive Consumers Are to Price Changes, Economists