The elasticity of demand:
A) equals the inverse of price to quantity demanded.
B) measures how far the demand curve shifts from a change in price.
C) tells us how responsive consumer purchases are to price changes.
D) estimates the relationship between quantity demand and production costs.

Question

Quizplus · Accepted Answer

The elasticity of demand tells us how responsive consumer purchases are to price changes. It is a measure of the percentage change in quantity demanded in response to a percentage change in price.

The Elasticity of Demand