A measure of price sensitivity that gives the percentage change in quantity demanded in response to a percentage change in price is known as
A)marginal revenue.
B)break-even analysis.
C)price elasticity of supply.
D)profit maximization.
E)price elasticity of demand.

Question

Quizplus · Accepted Answer

Price elasticity of demand is the measure of the responsiveness of quantity demanded to a change in price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price. This measure helps firms understand how changes in price will affect the demand for their products and can help them make decisions about pricing strategies.

A Measure of Price Sensitivity That Gives the Percentage Change