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Question
Macroeconomics
Posted 7 months ago

Price elasticity of demand is a concept used to describe what concept in economics?

Choose 1 answer:
(A) whether quantity demanded increases or decreases when price increases
(B) how responsive output is to a change in government spending
(c) the magnitude of the change in quantity due to a change in income
(D) the magnitude of the change in quantity due to a change in price
(E) how responsive sellers are to a change in the price of a good
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Answer from Sia
Posted 7 months ago
Solution
a
Understanding Price Elasticity of Demand: Price elasticity of demand measures how much the quantity demanded of a good responds to a change in the price of that good. It is calculated by dividing the percentage change in quantity demanded by the percentage change in price
b
Correct Answer Identification: The correct answer to the question "Price elasticity of demand is a concept used to describe what concept in economics?" is the one that correctly identifies this responsiveness of quantity demanded to price changes
Answer
(D) the magnitude of the change in quantity due to a change in price
Key Concept
Price Elasticity of Demand
Explanation
Price elasticity of demand describes the responsiveness of the quantity demanded of a good to a change in its price. It is a measure of how much the quantity demanded will change when the price changes.

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