Price elasticity of demand is a measure of the
A) extent of competition in the market.
B) percentage change in price times the percentage change in quantity demanded.
C) absolute change in price.
D) degree of consumer responsiveness to changes in price.
E) percentage change in the prices of two products.

Question

Quizplus · Accepted Answer

Price elasticity of demand measures how much the quantity of a good or service demanded changes in response to a change in price. It is a measure of consumer responsiveness to changes in price.

Price Elasticity of Demand Is a Measure of the