Price Elasticity of Demand Basically Measures

question 7

Multiple Choice

Price elasticity of demand basically measures

• A) the reliability of a product.
• B) the responsiveness of consumers to price changes.
• C) the variability of price changes.
• D) the percentage change in market price as a result of a change in demand.

---

Definitions:

Specific Capacities

The particular abilities or skills that an individual possesses, which can vary greatly from person to person, such as memory capacity, athletic ability, or intellectual strength.

Factor Analysis

A statistical method used to identify underlying variables, or factors, that explain the pattern of correlations within a set of observed variables.

Spearman

Refers to Charles Spearman, a British psychologist who is best known for his work in statistics and intelligence, including the concept of the general intelligence factor "g".

Intelligence

The ability to acquire, understand, and use knowledge effectively, including the capacity for logic, reasoning, problem solving, and learning.