Which economic term refers to the responsiveness of the quantity demanded of a good to a change in its price?

💡 Solution & Explanation

Price elasticity of demand measures the degree of responsiveness of consumers regarding the quantity they purchase of a specific commodity when its market price undergoes percentage alterations. It differs fundamentally from cross elasticity, which assesses how demand reacts to price shifts in substitute or complementary goods. A related microeconomic concept is the marginal revenue relationship associated with varying elasticities along a linear demand curve.