Which of the following statements about the price elasticity of demand is correct?
A)The price elasticity of demand for a good measures the willingness of buyers of the good to buy less of the good as its price increases.
B)Price elasticity of demand reflects the many economic,psychological,and social forces that shape consumer tastes.
C)Other things equal,if good x has close substitutes and good y does not have close substitutes,then the demand for good x will be more elastic than the demand for good y.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the statements are correct. The price elasticity of demand measures the responsiveness of quantity demanded to changes in price. It reflects the many factors that shape consumer tastes, including economic, psychological, and social forces. Other things equal, goods with close substitutes will have more elastic demand than goods without close substitutes.

Which of the Following Statements About the Price Elasticity of Demand