Which of the following is true of price elasticity of demand?
A) It measures the responsiveness of quantity demanded or quantity supplied to a change in one of the determinants of demand and/or supply.
B) It is calculated as the percentage change in the quantity demanded of a product divided by the percentage change in the price of that product.
C) It is calculated as the percentage change in the demand for a good divided by the percentage change in income,everything else held constant.
D) It measures the responsiveness of demand to a change in the quantity supplied.
E) It is calculated as the percentage change in the quantity demanded for one good divided by the percentage change in the price of a related good,everything else held constant.
Correct Answer:
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