What does the price elasticity of demand measure
A)a buyer's responsiveness to a change in the price of a good
B)the increase in demand as additional buyers enter the market
C)how much more of a good consumers will demand when incomes rise
D)the increase in demand for a good when there is an increase in its price

Question

Quizplus · Accepted Answer

The price elasticity of demand measures how responsive consumers are to a change in the price of a good. It measures the percentage change in quantity demanded in response 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 indicates that consumers are less sensitive to changes in price.

What Does the Price Elasticity of Demand Measure