Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market.
-The price elasticity of demand for a product is a measure of the:
A)extent of competition in the market for the product.
B)change in the quantity purchased of the product relative to a change in a consumer's income.
C)change in the quantity demanded of the product due to changes in factors other than price.
D)degree of consumer responsiveness to changes in the price of the product.
E)percentage change in the prices of two related products.

Question

​Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market. 
-The price elasticity of demand for a product is a measure of the:
A)extent of competition in the market for the product. 
B)change in the quantity purchased of the product relative to a change in a consumer's income. 
C)change in the quantity demanded of the product due to changes in factors other than price. 
D)degree of consumer responsiveness to changes in the price of the product. 
E)percentage change in the prices of two related products.

Quizplus · Accepted Answer

The price elasticity of demand measures the responsiveness of the quantity demanded of a product to changes in its price. Therefore, the best choice is D, which states that the price elasticity of demand is a measure of the degree of consumer responsiveness to changes in the price of the product. A, B, C, and E do not accurately describe the price elasticity of demand.

​Figure 53

Figure 53