The price elasticity of demand measures
A) how sensitive the quantity demanded is to changes in demand.
B) the responsiveness of the quantity demanded to changes in price.
C) how often the price of a good changes.
D) the slope of a budget curve.

Question

Quizplus · Accepted Answer

The price elasticity of demand specifically measures the responsiveness or sensitivity of the quantity demanded of a good or service to a change in its price. This concept is fundamental in understanding how changes in prices can affect the demand for a product.

The Price Elasticity of Demand Measures