The percentage change in quantity demanded relative to the percentage change in price is referred to as
A)marginal revenue.
B)price elasticity of demand.
C)average demand.
D)marginal demand.
E)demand shift.

Question

Quizplus · Accepted Answer

The percentage change in quantity demanded relative to the percentage change in price is referred to as price elasticity of demand. It measures how sensitive consumers are to changes in price, with a greater percentage change in quantity demanded indicating greater elasticity (or responsiveness) to price changes. Marginal revenue refers to the change in revenue from selling one additional unit of a good, while average demand and marginal demand are not commonly used economic terms. Demand shift refers to a change in the entire demand curve, rather than just a movement along it due to a change in price.

The Percentage Change in Quantity Demanded Relative to the Percentage