Which of the following statements is false?
A)Income elasticity of demand measures the responsiveness of quantity demanded to changes in income.
B)Price elasticity of demand measures the responsiveness of quantity demanded to changes in price.
C)Price elasticity of demand and the slope of a demand curve are the same thing.
D)The more substitutes for a good, the higher the price elasticity of demand, ceteris paribus.

Question

Quizplus · Accepted Answer

Price elasticity of demand is a measure of how much the quantity demanded of a good responds to a change in the price of that good, and it is calculated as the percentage change in quantity demanded divided by the percentage change in price. This is different from the slope of a demand curve, which is the rate of change of quantity demanded in response to a change in price in absolute terms. The slope is a constant value in linear demand curves, while elasticity can vary along the curve.

Which of the Following Statements Is False