In economics, the measure of how much the quantity demanded responds to a change in price is known as _________.

In economics, the measure of how much the quantity demanded responds to a change in price is known as price elasticity of demand. This concept helps us understand how sensitive consumers are to changes in price; for instance, if the price of a product goes up, we can see if people will buy less of it. If the quantity demanded drops significantly when the price rises, we say the demand is elastic. Conversely, if the quantity demanded changes very little, the demand is inelastic. An example is if the price of a popular brand of shoes increases by 20% but the quantity demanded only falls by 5%, the demand for those shoes is inelastic because people still want to buy them despite the higher price.