Price elasticity looks at
A) The law of demand.
B) How much quantity demanded changes after a change in price.
C) The degree to which price changes with a change in quantity demanded.
D) Why the law of demand is untrue.

Question

Quizplus · Accepted Answer

Price elasticity measures the responsiveness of quantity demanded to a change in price. It is conceptually derived from the law of demand, which states that as price increases, quantity demanded decreases, all other things being equal. Therefore, the correct answer is B, as it directly describes what is being analyzed when looking at price elasticity. Options A, C, and D are not accurate explanations of price elasticity.

Price Elasticity Looks at