Question

The price elasticity of demand measures:

Select one:

a. the percentage change in quantity demanded of a good in response to a one percentage change in

income

b. none of the above

c. the change in the number of units demanded of a good in response to a one percentage change in

its price

d. the percentage change in quantity demanded of a good in response to a one dollar change in its

price

Answer 1

Answer:- Its correct option is B. i.e,

None of the above.

Reason:- The price elasticity of demand measure the percentage change in quantity demanded in response to percentage change in its price.  

-> Option A is incorrect because this helps in measure the income elasticity of demand.  

-> Option C is incorrect because here the number of goods are change in response to percentage change in price.  

-> Option D is incorrect because here the percentage change in quantity demanded in response to change in dollar price.