Price elasticity of demand is a measure of the
A) relative increase in the demand curve in response to a decrease in price
B) relative decrease in the demand curve in response to an increase in price
C) responsiveness of the quantity demanded to an increase or a decrease in price
D) responsiveness of consumers to advertising expenditures of firms

Question

Quizplus · Accepted Answer

Price elasticity of demand measures how much the quantity demanded of a good responds to a change in the price of that good, capturing the responsiveness of consumers to price changes, whether increases or decreases.

Price Elasticity of Demand Is a Measure of the