The percentage change in quantity demanded relative to the percentage change in price is referred to as
A) price elasticity of demand.
B) demand derivative of price.
C) average demand.
D) marginal revenue.
E) derived demand.

Question

Quizplus · Accepted Answer

Price elasticity of demand measures how much the quantity demanded of a good responds to a change in the price of that good, expressed as a percentage change.

The Percentage Change in Quantity Demanded Relative to the Percentage