question archive Demand price elasticity measures: a) how much supply will change as price changes
Demand price elasticity measures: a) how much supply will change as price changes
Subject:EconomicsPrice:2.88 Bought3
Demand price elasticity measures:
a) how much supply will change as price changes.
b) how consumers change their purchases in response to a change in the price of a product.
c) how consumers change their purchases in response to a change in income.
d) the change in price brought about by a change in consumer demand.
e) how consumers change their purchases in response to a change in the price of a substitute goodc
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E) how consumers change their purchases in response to a change in the price of a product
Price elasticity of demand shows how quantity demanded changes in response to a change in price. It is the percentage change in quantity demanded divided by the percentage change in price (1). Price elasticity of demand is the ratio between the percentage change in the quantity demanded and the corresponding percent change in price (2). An elastic demand has elasticity which is greater than one, shows high responsiveness to changes in price.
