The price elasticity of demand is a measure of: Group of answer choices 1.the change in price of a good that results from a change in its quantity demanded. 2.the responsiveness of the quantity demanded of a good to a change in its price. 3.the demand for a good. 4.how consumers respond to excess demand.
Question
The price elasticity of demand is a measure of: Group of answer choices
1.the change in price of a good that results from a change in its quantity demanded.
2.the responsiveness of the quantity demanded of a good to a change in its price.
3.the demand for a good.
4.how consumers respond to excess demand.
Solution
The price elasticity of demand is a measure of:
- the responsiveness of the quantity demanded of a good to a change in its price.
Explanation: Price elasticity of demand is a concept in economics that describes how responsive the quantity demanded of a good is to a change in its price. In other words, it measures the percentage change in quantity demanded in response to a one percent change in price. If the elasticity is high, it means consumers are very responsive to changes in price, while a low elasticity means consumers are not very responsive to price changes.
Similar Questions
What is price elasticity of demand?Multiple ChoiceThe responsiveness of price to a change in the quantity demanded.The responsiveness of quantity demanded to a change in price.Price divided by quantity demanded.Price multiplied by quantity demanded.
What is the definition of price elasticity of demand? A. the slope of the demand curve B. the percentage change in quantity demanded divided by the percentage change in price C. the percentage change in price divided by the percentage change in quantity demanded D. the slope of the demand curve divided by the priceReset Selection
Price Elasticity Of Demand
What is the purpose of price elasticity of demand?Select one:a.To measure customers' willingness to pay for a productb.To determine the optimal pricing strategy for a productc.To assess the impact of changes in price on demandd.To analyze competitors' pricing strategiesClear my choice
The price elasticity of a demand for a good:A.can vary from person to person.B.can be affected by the number of substitutes.C.can change over time.D.depends on the proportion of income the good requires in order to be purchased.E.All of the above
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.