The price elasticity of demand measures the responsiveness of consumers to changes in the price of a product.

Question

Quizplus · Accepted Answer

The price elasticity of demand is a measure of how sensitive consumers are to changes in the price of a product. It measures the percentage change in the quantity demanded of a product in response to a percentage change in its price. If the demand for a product is highly elastic, small changes in price can cause large changes in demand, while if it is inelastic, changes in price have little effect on demand. So, the statement is true.

The Price Elasticity of Demand Measures the Responsiveness of Consumers