Understanding Demand Elasticity

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Question:

The elasticity of demand measures:

the percentage change in price.

how responsive quantity demanded is to a change in price.

the percentage change in quantity supplied divided by the percentage change in price.

the percentage change in quantity demanded.

Answer:

The elasticity of demand measures how responsive quantity demanded is to a change in price. It quantifies the relationship between a change in the quantity demanded of a good and a change in its price.