The price elasticity of demand measures the response of consumers to a change in price.

Name: The price elasticity of demand measures the response of consumers to a change in price.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The statement is true. The price elasticity of demand measures the percentage change in quantity demanded in response to a percentage change in price. It helps businesses understand how sensitive consumers are to changes in price and can help them determine the optimal price point for their product or service.

The Price Elasticity of Demand Measures the Response of Consumers