The price elasticity of demand measures
A) changes in demand.
B) how responsive market prices are to a change in demand.
C) how responsive consumers are to a change in price.
D) how responsive consumers are to a change in income.

Question

Quizplus · Accepted Answer

Price elasticity of demand measures how much the quantity demanded of a good changes when there is a change in its price. It shows the degree of sensitivity of consumers to changes in the price of a product. Therefore, the correct option is C.

The Price Elasticity of Demand Measures