When the price goes down,the quantity demanded goes up.The price elasticity of demand measures:
A)how much the price goes down.
B)how much the equilibrium price goes up.
C)the responsiveness of the price change to an income change.
D)the responsiveness of the quantity change to the price change.

Question

Quizplus · Accepted Answer

The price elasticity of demand measures the responsiveness of the quantity demanded to a change in price. This means that if the price goes down, the quantity demanded will increase by a certain amount, and the price elasticity of demand measures how much that change in quantity is in response to the change in price.

When the Price Goes Down,the Quantity Demanded Goes Up