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xxTIMURxx [149]
3 years ago
14

The price elasticity of demand measures the:

Business
1 answer:
seropon [69]3 years ago
7 0

Answer:

The correct answer is letter "B": magnitude of the response in quantity demanded to a change in price.

Explanation:

Price elasticity of demand is the measure of how quantity demanded for a good or service changes as a result of changes in price. <em>Price elasticity of demand is calculated by dividing the percentage change in quantity demanded by the percentage change in price</em>. If the result is equal or greater than one (1) the good or service is elastic. If the result is lower than one (1), the product is inelastic.

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Mitch, a single tax-payer, earns $100,000 in taxable income and $10,000 in interest from an investment in city of Birmingham Bon
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