Question : The quantity demanded of a good or service divided by the price change in percentage form the price elasticity of demand.
Option 1: The difference between the changes in the quantity required and the percent change in revenue.
Option 2: The difference between the percentage change in revenue and the percentage changes in the quantity requested.
Option 3: The % change in the amount demanded of a product divided by the percentage change in the quantity required of a good, a change in the cost of the item
Option 4: All of the above
Correct Answer: The % change in the amount demanded of a product divided by the percentage change in the quantity required of a good, a change in the cost of the item
Solution :
It is the % change in the amount demanded of a product divided by the percentage change in the quantity required of a good, a change in the cost of the item.
The term "price elasticity of demand" describes how quickly a market can adjust to changes in consumer demand.
Hence c is the correct answer.
