Question

The degree of response of demand to change in price is

(A) Income elasticity of demand

(B) Cross-elasticity of demand

(C) Price elasticity of demand

(D) All the above​

Answer 1

Answer:

Price elasticity of demand

Answer 2

Answer:

The PED is the percentage change in quantity demanded in response to a one percent change in price. The PED coefficient is usually negative, although economists often ignore the sign. Demand for a good is relatively inelastic if the PED coefficient is less than one (in absolute value)