The price elasticity of demand is a measure of
A) the responsiveness of the quantity demanded of a good to a changes in the price of the good.
B) the quantity demanded of a good at a given price.
C) the demand for a product holding prices constant.
D) the horizontal shift in the demand curve when the price of a good changes.

Question

Quizplus · Accepted Answer

The price elasticity of demand measures the responsiveness of the quantity demanded of a good to changes in the price of the good. It is calculated as the percentage change in quantity demanded divided by the percentage change in price. It helps to determine the sensitivity of consumers to price changes and is an important factor for businesses in setting prices and predicting changes in demand.

The Price Elasticity of Demand Is a Measure of