Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market.
-Which of the following is explained by the price elasticity of demand for a product?
A)The effect of changes in price on the supply of the product
B)The effect of changes in quantity on the supply of the product
C)The effect of changes in quantity on the price of the product
D)The effect of changes in price on the quantity demanded of the product
E)The effect of changes in price on the quantity supplied of the product

Question

​Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market. 
-Which of the following is explained by the price elasticity of demand for a product?
A)The effect of changes in price on the supply of the product 
B)The effect of changes in quantity on the supply of the product 
C)The effect of changes in quantity on the price of the product 
D)The effect of changes in price on the quantity demanded of the product 
E)The effect of changes in price on the quantity supplied of the product

Quizplus · Accepted Answer

The price elasticity of demand measures the responsiveness of the quantity demanded of a product to changes in its price. Therefore, changes in price will have an effect on the quantity demanded of the product.

​Figure 53

Figure 53