Price Elasticity of Demand Is Defined as the

Multiple Choice

Price elasticity of demand is defined as the

A) percentage increase in price induced by a decrease in demand.
B) absolute change in quantity demanded divided by the absolute change in price.
C) maximum amount consumers will pay for increased quantity.
D) percentage amount by which price can change without affecting the quantity demanded.
E) percentage change in quantity demanded induced by a 1 percent change in price.