The price elasticity of demand measures ?
Correct answer: A. The responsiveness of quantity demanded to a change in price
- A. The responsiveness of quantity demanded to a change in price
- B. How far a demand curve shifts
- C. a change in price
- D. a change in quantity demanded
Explanation
Price elasticity of demand is the responsiveness of quantity demanded to a change in the good's own price, usually expressed as percentage change in quantity divided by percentage change in price. A demand-curve shift is caused by non-price factors and is not elasticity.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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