What does price elasticity of demand measure?
A)How responsive suppliers are to price changes
B)How responsive sales are to changes in the price of a related good
C)How responsive quantity demanded is to a change in price
D)How responsive sales are to a change in buyers' incomes

Question

Quizplus · Accepted Answer

Price elasticity of demand measures the responsiveness of the quantity demanded to a change in price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price. A high price elasticity of demand indicates that buyers are very sensitive to changes in price, while a low price elasticity of demand indicates that buyers are relatively insensitive to changes in price.

What Does Price Elasticity of Demand Measure