The price elasticity of demand is a measure of
A) the equilibrium price of a product.
B) buyers' responsiveness to changes in the price of a product.
C) the amount of a product purchased when income increases.
D) whether a product is a substitute or a complement.
E) how much a change in demand affects the equilibrium price.

Question

Quizplus · Accepted Answer

The price elasticity of demand measures how much buyers are responsive to changes in the price of a product. It is a measure of the percentage change in quantity demanded resulting from a percentage change in the price of the product.

The Price Elasticity of Demand Is a Measure of