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What does price elasticity of demand measure

This question belongs to Commerce Economics
Economics
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What does price elasticity of demand measure?

Answer & Solution
Correct Answer: Option C
The price elasticity of demand measures the responsiveness of the quantity demanded to changes in the price. Demand is inelastic if it does not respond much to price changes, and elastic if demand changes a lot when the price changes. Necessities tend to have inelastic demand.
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