The price elasticity of demand measures which of the following?
A) the slope of the demand curve
B) the rate at which demand changes when price changes
C) how responsive the quantity demanded is to changes in price
D) the percentage-slope of the demand curve
E) None of these correctly defines what price elasticity of demand measures.

Question

Quizplus · Accepted Answer

Price elasticity of demand measures how responsive the quantity demanded is to changes in price. It is typically calculated as the percentage change in quantity demanded divided by the percentage change in price. A higher price elasticity of demand indicates that consumers are more sensitive to changes in price, while a lower price elasticity of demand indicates that consumers are less sensitive to changes in price.

The Price Elasticity of Demand Measures Which of the Following