Price elasticity of demand shows how:
A) To compute the slope of the demand curve.
B) Quantity demanded responds to price changes.
C) Quantity demanded responds to changes in the price of other goods.
D) Price responds to demand changes.

Question

Quizplus · Accepted Answer

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price. In other words, it shows how much the quantity demanded changes when the price of a good changes.

Price Elasticity of Demand Shows How