The price elasticity of demand measuresChoose one optionhow often the price of a good changeshow sensitive the quantity demanded is to changes in demandthe responsiveness of the quantity demanded to changes in pricethe slope of a budget curve
Question
The price elasticity of demand measuresChoose one optionhow often the price of a good changeshow sensitive the quantity demanded is to changes in demandthe responsiveness of the quantity demanded to changes in pricethe slope of a budget curve
Solution
The correct answer is "the responsiveness of the quantity demanded to changes in price". The price elasticity of demand is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price.
Similar Questions
Price elasticity of demand reveals how responsive the change in quantity demanded is to a change in price
If the quantity demanded of a good is sensitive to a change in the price of that good, demand is said to be elastic.Question 5AnswerTrueFalse
What is the economic term for the measurement of how responsive quantity demanded is to a change in price? Price sensitivity Price resistance Price elasticity of demand Price flexibility
Demand is said to be elastic when the: Group of answer choicespercentage change in quantity demanded is less than the percentage change in price.percentage change in quantity demanded is greater than the percentage change in price.change in quantity demanded is less than the change in price.change in quantity demanded is greater than the change in price.
Along a demand curve with a constant slope, the price elasticity of demand:1 pointwill be greater at higher prices than at lower prices. is constant.will be greater at lower prices than at higher prices.is always equal to 1.
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