A measure of the rate of percentage change of quantity demanded with respect to price, holding all other determinants of demand constant is
A) Price elasticity of market equilibrium
B) Price elasticity of demand
C) Price elasticity of supply
D) Price elasticity equilibrium

Question

Quizplus · Accepted Answer

The measure described in the question is known as price elasticity of demand. It is calculated as the percentage change in quantity demanded divided by the percentage change in price, holding other factors constant. This measure helps to determine how sensitive consumers are to changes in price and is a crucial concept in economics. Option A, C and D are not the correct choices because they do not accurately describe the measure mentioned in the question.

A Measure of the Rate of Percentage Change of Quantity