The price elasticity of demand measures which of the following? Select one: O a. the slope of the demand curve O b. the rate at which demand changes when price changes O c. None of these correctly defines what price elasticity of demand measures. O d. how responsive the quantity demanded is to changes.in price O e. the percentage-slope of the demand curve

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Elasticity of Demand and Supply

The elasticity of demand and supply are two important concepts of microeconomics. The elasticity of demand measures the responsiveness of consumers’ demands to the price change, changes in income of consumers, and changes in the price of the related goods. Similarly, the elasticity of supply refers to the proportionate change in the quantity supplied due to the proportionate change in the price. In other words, it can be said that elasticity of supply measures how the quantity of supply changes when the price changes of that particular product.