Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / Which of the following is the most precise definition of the own price elasticity of demand? A
Which of the following is the most precise definition of the own price elasticity of demand?
A. It is the measure of how sensitive the consumer is to a change in price.
B. It measures the slope of the demand curve.
C. It measures the percentage change in quantity demanded of good x as a result of a percentage change in price per unit of good x.
D. It measures the total change in quantity demanded of good x as a result of a total change in price per unit of good x.
A. It is the measure of how sensitive the consumer is to a change in price is the most accurate answer. Price elasticity of demand is used to determine how much a consumer will react to a change in price of a product. If they change their demand a lot it is said to be elastic, if their demand changes little to a change in price their demand is said to be more inelastic.
