Question

price elasticity of demand measures:
a. the change in price brought about by a change in consumer demand.
b. how consumers change their purchases of a good in response to a change in income.
c. how consumers change their purchases of a good in response to a change in its price.
d. how consumers change their purchases of a good in response to a change in the price of a substitute good.

Explanation:

Price elasticity of demand is a concept focused on the relationship between a good's own price and the quantity demanded of that good. Option a describes the reverse relationship (price change from demand change), option b refers to income elasticity of demand, and option d refers to cross-price elasticity of demand. Only option c matches the definition of price elasticity of demand.

Answer:

c. how consumers change their purchases of a good in response to a change in its price.