Price elasticity of demand measures the change in:
A) quantity demanded due to the change in price.
B) demand due to the change in price.
C) quantity demanded due to the change in price of another good/service.
D) price due to a change in quantity demanded.
E) price due to the change in demand.

Question

Quizplus · Accepted Answer

Price elasticity of demand measures how much the quantity demanded changes in response to a change in price. Therefore, option A is the correct choice. Option B is incorrect as elasticity is a measure of how quantity demanded changes, not demand itself. Option C refers to cross-price elasticity of demand, which is a different concept altogether. Option D and E are also incorrect as they suggest price changing due to quantity demanded and demand, respectively, whereas elasticity measures the extent to which quantity demanded changes in response to price changes.

Price Elasticity of Demand Measures the Change In