Price elasticity of demand measures the
A) change in quantity demanded generated by a change in price
B) change in price generated by a change in quantity demanded
C) percentage change in the price of a good demanded generated by a percentage change in people's income
D) percentage change in quantity demanded generated by a percentage change in price
E) percentage change in price generated by a percentage change in quantity demanded

Question

Quizplus · Accepted Answer

Price elasticity of demand specifically refers to the percentage change in quantity demanded of a good or service in response to a percentage change in its price, which is accurately described in option D.

Price Elasticity of Demand Measures the