To determine the price elasticity of demand,we
A) need information on consumers' incomes.
B) need to know how much is available.
C) compare the percentage change in the quantity demanded to the percentage change in the price.
D) compare the change in the quantity to the change in price.
E) divide the quantity by the price.

Question

Quizplus · Accepted Answer

Price elasticity of demand measures the responsiveness of the quantity demanded to the change in price. To calculate it, we need to compare the percentage change in the quantity demanded to the percentage change in the price. The other options are not directly related to calculating price elasticity of demand.

To Determine the Price Elasticity of Demand,we