Mathematically, price elasticity of demand is the percentage change in the _____ of a good divided by the percentage change in the _____ of that good.
A) quantity demanded; price
B) price; quantity
C) quantity; price

Question

Quizplus · Accepted Answer

Price elasticity of demand measures the responsiveness of quantity demanded to a change in price. Therefore, the percentage change in the quantity demanded is divided by the percentage change in the price. This gives the price elasticity of demand, which indicates how sensitive consumers are to changes in the price of a good.

Mathematically, Price Elasticity of Demand Is the Percentage Change in the _____