The price elasticity of demand measures the
A)magnitude of the response in quantity demanded to a change in price.
B)direction of the shift in the demand curve in response to a market event.
C)size of the shortage created by the increase in demand.
D)responsiveness of quantity demanded to a change in income.

Question

Quizplus · Accepted Answer

The price elasticity of demand measures how much the quantity demanded changes in response to a change in the price of a good or service. It is a measure of the magnitude or responsiveness of the change in quantity demanded to the change in price.

The Price Elasticity of Demand Measures the