The measure of how much the quantity demanded of a good responds to a change in price is known as _____ of demand.

The measure of how much the quantity demanded of a good responds to a change in price is known as the elasticity of demand. When the price of a product goes up or down, elasticity helps us understand how many people will buy more or less of that product. For example, if the price of ice cream increases, and many people decide to buy less ice cream, we say that the demand for ice cream is elastic. This means that consumers are sensitive to price changes. On the other hand, if the price of a necessary medicine increases and people continue to buy it, the demand for that medicine is inelastic, showing that consumers are less sensitive to price changes for essential items.