Asked by Joseph Stewart on Jul 02, 2024
Verified
The price elasticity of demand tells us about
A) The sensitivity of price to quantity
B) The sensitivity of quantity to price
C) The sensitivity of income to price
D) The sensitivity of income to quantity
Price Elasticity of Demand
A measure of how much the quantity demanded of a good responds to a change in its price, with high elasticity indicating a significant response to price changes.
Sensitivity of Quantity
The responsiveness of the quantity demanded or supplied of a product to changes in its price or other factors.
Sensitivity of Price
The degree to which the price of a product or service impacts consumer demand or the quantity supplied.
- Gain insight into the conceptualization and numerical analysis of demand elasticity for singular entities and the collective market.
Verified Answer
DM
Deidre Miles6 days ago
Final Answer :
B
Explanation :
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price. It shows the percentage change in the quantity demanded when there is a percentage change in price.
Learning Objectives
- Gain insight into the conceptualization and numerical analysis of demand elasticity for singular entities and the collective market.