The price elasticity of demand is defined as?
Athe percentage change in the quantity demanded divided by the percentage change in income.
Bthe percentage change in income divided by the percentage change in the quantity demanded
Cnone of these answers
Dthe percentage change in the quantity demanded of a good divided by the percentage change in the price of that good
Correct answer
D. the percentage change in the quantity demanded of a good divided by the percentage change in the price of that good
Explanation
The correct answer is the percentage change in the quantity demanded of a good divided by the percentage change in the price of that good.