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

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.

The price elasticity of demand is defined as the percentage change in the price of that good divided by the percentage change in quantity demanded for that good.Question 1AnswerTrueFalse

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

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

Price elasticity of demand reveals how responsive the change in quantity demanded is to a change in price