The price elasticity of demand tells us about a. The sensitivity of price to quantity b. The sensitivity of quantity to price c. The sensitivity of income to price d. The sensitivity of income to quantity

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Kathryn Wall

Business

17 July, 19:13

The price elasticity of demand tells us about a. The sensitivity of price to quantity b. The sensitivity of quantity to price c. The sensitivity of income to price d. The sensitivity of income to quantity

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Ally Dixon · Answer 1

B. The sensitivity of quantity to price

Explanation: The price elasticity of demand tries to show the changes that takes place in the quantity demanded as the price changes. It is an inverse relationship which shows that as the price of a commodity rises the quantity demanded of that commodity will reduce.

The law of demand states that as the price of goods and services increases the Quantity demanded of such goods and services will reduce in response to the increased price.