The price elasticity of demand indicates
A)buyers' responsiveness to price changes.
B)the slope of the demand curve.
C)how far demand stretches over time.
D)the extent to which a demand curve shifts as incomes change.

Question

The price elasticity of demand indicates
A)buyers'  responsiveness to price changes.
B)the slope of the demand curve.
C)how far demand stretches over time.
D)the extent to which a demand curve shifts as incomes change.

Quizplus · Accepted Answer

Price elasticity of demand measures how sensitive consumers are to changes in price, so it directly indicates buyers' responsiveness to price changes. The other options are not related to price elasticity of demand.

The Price Elasticity of Demand Indicates