The price elasticity of demand is a units-free measure of the responsiveness of the ________ when all other influences on buying plans remain the same.
A)quantity demanded to a change in the price of a substitute or complement
B)quantity demanded to a change in income
C)quantity demanded of a good to a change in its price
D)price to a change in quantity demanded
E)none of the above

Question

Quizplus · Accepted Answer

The definition of price elasticity of demand specifically refers to the responsiveness of quantity demanded to a change in the price of the good itself, holding all other factors constant. This means that answer choices A and B are not accurate descriptions of price elasticity of demand. Answer choice D is not incorrect, but it is not the complete definition of price elasticity of demand. Therefore, the best choice is C.

The Price Elasticity of Demand Is a Units-Free Measure of the Responsiveness