) The price elasticity of demand measures A) the slope of a budget curve.? B) how often the price of a good changes. C) the responsiveness of the quantity demanded to changes in price. D) how sensitive the quantity demanded is to changes in demand.
Answers
Answered by
0
Answer:
Elasticity is a microeconomics concept that measures responsiveness of one variable as a result of change in its related variable. This concept is very important in microeconomics theories.
Answered by
0
Option c is the correct answer.
The price elasticity of demand measures the responsiveness of the quantity demanded to changes in price.
- The price elasticity of demand tells whether a good's demand is elastic or inelastic.
- If the demand of good is highly responsive to a given change in price then it is elastic demand.
- If the demand of good is very less responsive or not at all responsive to a given change in price then it is inelastic demand.
Similar questions