Answered

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What is a measure that demonstrates how consumers respond to changes in the price of goods and services?

A. Law of diminishing returns
B. Law of demand
C. Unit elasticity
D. Demand elasticity

Sagot :

GinnyAnswer

Final answer:

Price elasticity of demand and cross price elasticity of demand measure responsiveness to price changes, providing insights into consumer behavior.


Explanation:

Price elasticity of demand measures how responsive quantity demanded is to changes in price. Economists also use cross price elasticity of demand to describe the responsiveness of demand for a good or service to a change in the price of another good or service. Additionally, using percentage change measure helps eliminate the unit dependency in measuring responsiveness.


Learn more about Elasticity of demand in Economics here:

https://brainly.com/question/51316961


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