What does the price elasticity of demand for a good measure
A)how willing consumers are to move away from the good as price rises
B)how willing firms are to produce more of a good as price rises
C)how willing consumers are to buy more of a substitute good as price falls
D)how willing firms are to produce more of a good as price falls

Question

Quizplus · Accepted Answer

The price elasticity of demand measures how much the quantity demanded of a good will change as the price of that good changes. It specifically measures the responsiveness of consumers to changes in price. Option A accurately describes this concept.

What Does the Price Elasticity of Demand for a Good