A measure of the rate of percentage change of quantity demanded with respect to price, holding all other determinants of demand constant is what?
A)Price elasticity of market equilibrium
B)Price elasticity of demand
C)Price elasticity of supply
D)Price elasticity equilibrium

Question

Quizplus · Accepted Answer

The measure described is the definition of Price elasticity of demand. This measures the responsiveness of quantity demanded to a change in price and is calculated as the percentage change in quantity demanded divided by the percentage change in price. The measure described is known as price elasticity of demand, which calculates the responsiveness of quantity demanded to changes in price. Option A and D do not accurately describe this measure, while option C refers to a different measure that calculates the responsiveness of quantity supplied to changes in price.

A Measure of the Rate of Percentage Change of Quantity