What happens when the price elasticity of demand increases
A)The responsiveness of quantity demanded to price decreases
B)The responsiveness of quantity demanded to price decreases.
C)The percentage change in price over the percentage change in quantity demanded increases.
D)The responsiveness of quantity demanded to price increases.

Question

Quizplus · Accepted Answer

When the price elasticity of demand increases, it means that the percentage change in quantity demanded in response to a change in price is greater. In other words, consumers become more sensitive to changes in price and are more likely to adjust their quantity demanded accordingly. Therefore, the responsiveness of quantity demanded to price increases.

What Happens When the Price Elasticity of Demand Increases