The Price Elasticity of Demand for a Good Measures the Responsiveness

question 67

Multiple Choice

The price elasticity of demand for a good measures the responsiveness of:

• A)demand to a one percent change in price of that good.
• B)price to a one percent change in the demand for that good.
• C)quantity demanded to a one percent change in price of that good.
• D)price to a one percent change in the quantity demanded of that good.

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Definitions:

Uncertainty

A condition where the outcome of an event or the effect of a decision is unknown.