Q. The price elasticity of demand is defined as
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(A)
the percentage change in the quantity demanded divided by the percentage change in income.
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(B)
the percentage change in income divided by the percentage change in the quantity demanded.
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(C)
the percentage change in the quantity demanded of a good divided by the percentage change in the price of that good.
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(D)
the percentage change in price of a good divided by the percentage change in the quantity demanded of that good.
✅ Correct Answer: (C)
the percentage change in the quantity demanded of a good divided by the percentage change in the price of that good.