Price elasticity of demand tells us the responsiveness of
A) Quantity demanded, to a $1 change in price
B) Quantity demanded, to a 5% change in price
C) Price, to a 1% change in quantity demanded
D) Quantity demanded, to a 1% change in price

Question

Quizplus · Accepted Answer

Price elasticity of demand measures how much the quantity demanded of a good/service changes in response to a change in its price. Therefore, the correct choice is D: Quantity demanded, to a 1% change in price.

Price Elasticity of Demand Tells Us the Responsiveness of