Asked by Keondre Argyle on Jun 13, 2024
Verified
The price-elasticity of demand coefficient, Ed, is measured in terms of
A) dollar change in price and unit change in quantity demanded.
B) dollar change in price and amount of shift in demand.
C) percentage change in price and percentage change in quantity demanded.
D) percentage change in price and unit change in demand.
Price-Elasticity Of Demand
A gauge of the extent to which the amount of a product sought by consumers alters following a modification in its price.
Percentage Change
A mathematical calculation that demonstrates how much a quantity has increased or decreased relative to its previous value, often expressed as a percentage.
- Attain insight into the concept of price elasticity of demand and how to compute it.
Verified Answer
NS
No stop I swear to gosh stopJun 19, 2024
Final Answer :
C
Explanation :
The price-elasticity of demand coefficient, Ed, is measured in terms of percentage change in price and percentage change in quantity demanded, which allows for a standardized measure of responsiveness that is not dependent on the units of measurement for price or quantity.
Learning Objectives
- Attain insight into the concept of price elasticity of demand and how to compute it.