Question

Price elasticity of demand measures Select one: A. how responsive sales are to changes in the price of a related good. B. how responsive quantity demanded is to a change in price. C. how responsive sales are to a change in buyers' incomes. D. how responsive suppliers are to price changes.

Answer 1

Answer:

B

Explanation:

Elasticity of demand is the degree of responsiveness of the quantity demanded of a commodity to change in the price of the commodity.

It is of 3 types

1. Price elasticity of demand

2. Income elasticity of demand

3. Cross elasticity of demand

Answer 2

Answer:

The correct answer is letter "B": how responsive quantity demanded is to a change in price.

Explanation:

Elasticity is characteristic of certain goods and services have by which changes in prices affect quantity demanded. The price elasticity of demand is calculated by dividing the percentage change in quantity demanded by the percentage change in price. If the result is equal to or greater than one (1), the demand is elastic. If the result is lower than 1, the demand is inelastic.