________ measure(s)the amount that demand rises or falls with changes in price.
A) Price ceilings
B) Price fixing
C) Price per earning ratio
D) Price elasticity

Question

Quizplus · Accepted Answer

Price elasticity measures the degree of responsiveness of consumers to changes in the price of a product or service, i.e., how much the quantity demanded increases or decreases with a change in price. Price ceilings (A) refer to legal restrictions on how high a price can be charged for a good or service, while price fixing (B) is an illegal agreement between firms to set prices at a certain level. Price per earning ratio (C) is a financial metric used in investment analysis to indicate how much investors are willing to pay for each dollar of earnings generated by a company.

________ Measure(s)the Amount That Demand Rises or Falls with Changes