Price elasticity of demand is the responsiveness of quantity demanded to changes in price.

Question

Quizplus · Accepted Answer

Price elasticity of demand is indeed defined as the degree of responsiveness of quantity demanded to changes in price. When the price of a product changes, consumers may increase or decrease the amount they are willing to buy, and price elasticity measures the extent of this change in demand. A high degree of elasticity indicates that consumers are very sensitive to price changes, while a low degree of elasticity suggests that consumers are less responsive to price fluctuations.

Price Elasticity of Demand Is the Responsiveness of Quantity Demanded