Price Elasticity of Demand Is Defined as the Ratio of The

question 257

Multiple Choice

Price elasticity of demand is defined as the ratio of the:

• A) percentage increase in price to an increase in quantity demanded.
• B) unit change in quantity demanded to the dollar change in price.
• C) maximum amount that consumers will pay to increase quantity.
• D) percentage change in quantity demanded to the percentage change in price, other things being equal.