The responsiveness of quantity demanded of a good to changes in its price is the
A) cross elasticity of demand.
B) quantity elasticity of price.
C) income elasticity.
D) price elasticity of demand.

Question

Quizplus · Accepted Answer

The term that best fits the description given is "price elasticity of demand," also known as PED. This measurement expresses how much the quantity demanded of a good changes in response to a change in its price. PED can be calculated by dividing the percentage change in quantity demanded by the percentage change in price.

The Responsiveness of Quantity Demanded of a Good to Changes