The price elasticity of demand is a measure of the:
A) steepness or slope of a demand curve.
B) absolute changes in quantity demanded and price.
C) responsiveness of quantity demanded to a change in price.
D) sensitivity of the quantity demanded for one good to a change in the price of another good.

Question

Quizplus · Accepted Answer

Price elasticity of demand measures how responsive the quantity demanded is to changes in price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price. A high price elasticity of demand means that a small percentage change in price results in a larger percentage change in quantity demanded, indicating that consumers are sensitive to price changes.

The Price Elasticity of Demand Is a Measure of The