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- Subject
- Supply and Demandeconomics-mcqs › supply-and-demand
- Published
- 29 May 2019
- Last updated
- 28 May 2026
What does the price elasticity of demand measure?
Multiple choice question for Supply and Demand. Select an option, then review the explanation below.
Explanation
Price elasticity of demand is defined as the ratio between the percentage change in quantity demanded and the percentage change in price, indicating how sensitive the quantity demanded is to price variations.
More Supply and Demand MCQs
Practice related questions from the same subject.
- 1.What is the typical shape of a demand curve?
- 2.What term describes a company earning profits beyond its normal profit level?
- 3.How does an increase in marginal cost affect output, and how does an increase in marginal revenue impact output?
- 4.Marginal revenue refers to the ________ resulting from producing an additional ________ of output.
- 5.What are firms generally assumed to do with their costs and profits?