Demand price elasticity measures:
A) how much supply will change as price changes.
B) how consumers change their purchases in response to a change in income.
C) how consumers change their purchases in response to a change in the price of a substitute good.
D) how consumers change their purchases in response to a change in the price of a product.
E) the change in price brought about by a change in consumer demand.

Question

Quizplus · Accepted Answer

Demand price elasticity measures how consumers change their purchases in response to a change in the price of a product. It is a measure of the sensitivity of the quantity of a good or service demanded to a change in its price. It is calculated by dividing the percentage change in the quantity demanded by the percentage change in price.

Demand Price Elasticity Measures