The Price Elasticity of Demand Measures

question 77

Multiple Choice

The price elasticity of demand measures

• A) the consumers' sensitivity to a price change.
• B) the producers' sensitivity to a price change.
• C) how much the market supply changes in response to a change in demand.
• D) how much the demand changes in response to a change in income.

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Definitions:

Expression

A combination of symbols, numbers, and operations (such as addition and multiplication) that represent a mathematical object or quantity.

Simplify

To reduce a complex mathematical expression or equation to a simpler form by performing operations and combining like terms.

Expression

In mathematics, an arrangement of numbers, symbols, and operators (such as + and ×) that represents a quantity or procedure. Expressions do not have equality signs.

Simplify

The process of making an expression or equation easier to understand or solve by reducing complexity.