Which of the following is explained by the price elasticity of demand for a prod
ID: 1193048 • Letter: W
Question
Which of the following is explained by the price elasticity of demand for a product?
a.
The effect of changes in price on the quantity supplied of the product
b.
The effect of changes in price on the quantity demanded of the product
c.
The effect of changes in price on the supply of the product
d.
The effect of changes in quantity on the price of the product
e.
The effect of changes in quantity on the supply of the product
a.
The effect of changes in price on the quantity supplied of the product
b.
The effect of changes in price on the quantity demanded of the product
c.
The effect of changes in price on the supply of the product
d.
The effect of changes in quantity on the price of the product
e.
The effect of changes in quantity on the supply of the product
Explanation / Answer
Price elasticity of demand refers to the change in quantity demanded of a good because of change in its price. It measures how responsive the demand for a good is, with respect to its price.
Therefore, correct option: (b) the effect of changes in price on the quantity demanded of the product
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