The price elasticity of demand refers to
A) how quickly demand rebounds when a price changes.
B) the willingness of consumers to purchase a product in times of high supply.
C) the effect of a price change on the volume purchased.
D) the range of prices in a product line.
E) the fact that consumers purchase greater quantities at higher prices.

Question

Quizplus · Accepted Answer

Price elasticity of demand measures how the quantity demanded of a good responds to a change in its price, indicating the sensitivity of consumers to price changes.

The Price Elasticity of Demand Refers to