The concept of price elasticity of demand is most closely related to:
A) the law of demand.
B) the equilibrium price.
C) the equilibrium quantity.
D) a shift in the demand curve.

Question

Quizplus · Accepted Answer

The concept of price elasticity of demand is directly related to the law of demand, which states that as prices increase, demand decreases. Price elasticity of demand measures the responsiveness of demand to changes in price, indicating how much demand will change in response to a change in price.

The Concept of Price Elasticity of Demand Is Most Closely