Price elasticity of demand is
A) the same as the slope of the demand curve.
B) the change in price for a given change in quantity demanded.
C) measured in dollars.
D) a measure of the percentage change in quantity demanded for a given percentage change in price.

Question

Quizplus · Accepted Answer

Price elasticity of demand is a measure of the responsiveness of quantity demanded to a change in price. It is typically measured as the percentage change in quantity demanded divided by the percentage change in price. Therefore, option D is the correct answer. The other options are incorrect because the slope of the demand curve is not necessarily the same as price elasticity of demand, price elasticity is not measured in dollars, and option B does not specify the direction of the change in quantity demanded.

Price Elasticity of Demand Is