Price elasticity of demand is a measure of the:
A)extent of competition in the market.
B)change in the purchase of a product relative to a change in income.
C)change in the quantity demanded due to factors other than price.
D)degree of consumer responsiveness to changes in price.
E)percentage change in the prices of two related products.

Question

Quizplus · Accepted Answer

Price elasticity of demand measures the degree of consumer responsiveness to changes in price. It indicates how much the quantity demanded of a product changes when its price is increased or decreased. It is an important measure for businesses to understand as it helps them to determine pricing strategies and predict changes in demand.

Price Elasticity of Demand Is a Measure of The