Question

The greater the price elasticity of demand the

a.greater the responsiveness of quantity demanded to price.
b. more likely the product is a neceessity
c. smaller the responsiveness of quantity demanded to price.
d greater the percentage change in price over the percentage change in quantity downloded

Answer 1

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price. a. The greater the price elasticity of demand, the greater the responsiveness of quantity demanded to price.

Step-by-step explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price. The greater the price elasticity of demand, the a. greater the responsiveness of quantity demanded to price. This means that a small change in price will result in a large change in quantity demanded.

For example, if the price elasticity of demand is 2, a 10% increase in price will lead to a 20% decrease in quantity demanded.