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Question
Price elasticity of demand measures ______.
Options
Change in price caused by cnange in demand.
The rate of change of demand.
The responsiveness of demand to a change in price.
The responsiveness of demand to a change in income.
Solution
Price elasticity of demand measures the responsiveness of demand to a change in price.
Explanation:
Price elasticity of demand measures how much the quantity demanded of a good responds to a change in the price of that good.
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