HomePrice Elasticity of Demand
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Price Elasticity of Demand
medium

The __________ of demand measures the responsiveness of quantity demanded to a change in price, indicating how much the quantity demanded will change in percentage terms in response to a one percent change in price.

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose AnswerChoose the Best Answer

A

Price Elasticity

B

Income Elasticity

C

Cross Elasticity

D

Supply Elasticity

Understanding the Answer

Let's break down why this is correct

It is the measure that tells how quantity changes when price changes. Other options are incorrect because This option talks about how quantity changes when income changes, not price; This option looks at how buying one product changes when the price of another product changes.

Key Concepts

Price Elasticity of Demand
Demand Sensitivity
Elastic vs. Inelastic Demand
Topic

Price Elasticity of Demand

Difficulty

medium level question

Cognitive Level

understand

Deep Dive: Price Elasticity of Demand

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Definition
Definition

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price. It quantifies how much the quantity demanded will change in percentage terms in response to a one percent change in price. Elasticity values help determine the sensitivity of demand to price fluctuations.

Topic Definition

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price. It quantifies how much the quantity demanded will change in percentage terms in response to a one percent change in price. Elasticity values help determine the sensitivity of demand to price fluctuations.

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