The price elasticity of demand for a product measures
A) how much price changes given a change in demand.
B) the slope of the demand curve for that product.
C) changes in demand.
D) how responsive consumers are to a price change.
E) how responsive producers are to a price change.

Question

Quizplus · Accepted Answer

The price elasticity of demand measures how responsive consumers are to a change in price of a product. It shows the percentage change in quantity demanded relative to a percentage change in price. A high price elasticity of demand indicates that consumers are very responsive to price changes, while a low price elasticity of demand means that consumers are less responsive to price changes.

The Price Elasticity of Demand for a Product Measures