question archive Which of the following is explained by the price elasticity of demand? a
Which of the following is explained by the price elasticity of demand? a
Subject:EconomicsPrice:2.88 Bought3
Which of the following is explained by the price elasticity of demand?
a. The effect of price changes on supply.
b. The effect of price changes on the quantity supplied.
c. The effect of price changes on demand.
d. The effect of price changes on the quantity demanded.
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The correct option is d. The effect of price changes on the quantity demanded.
The price elasticity of demand is the ratio of the percentage change in quantity demanded to the percentage change in price. The higher this ratio, the higher the responsiveness of the quantity demanded to changes in price.
