The price elasticity of demand is a measure of the extent to which the quantity demanded of a good changes when ________ and all other influences on buyers' plans remain the same.
A) income changes
B) the price of a related good changes
C) the price of the good changes
D) the demand alone changes
E) both the demand and the supply simultaneously change

Question

Quizplus · Accepted Answer

Price elasticity of demand measures the responsiveness of quantity demanded to a change in price while all other factors remain constant. Therefore, the correct answer is C - when the price of the good changes.

The Price Elasticity of Demand Is a Measure of the Extent