What is the price elasticity of demand?O A. The extent to which a change in price is affected by something other than priceO B. The extent to which quantity demanded responds to a change in price.O C. The extent to which quantity demanded responds to a change in income.O D. The extent to which quantity demanded responds to a change in input prices.

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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What is the price elasticity of demand?
O A. The extent to which a change in price is affected by something other than price
O B. The extent to which quantity demanded responds to a change in price.
O C. The extent to which quantity demanded responds to a change in income.
O D. The extent to which quantity demanded responds to a change in input prices.

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Introduction

The change in quantity required or provided as a result of differences in the demand or supply drivers is referred to as elasticity in economics. It aids economists in forecasting market circumstances due to changes in a number of variables. This concept is in favour of the taxation of goods and services as well as government decision-making. This concept is also used by businesses and producers to foresee patterns in demand and estimate the price of their goods.

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