Final answer:
The price elasticity of demand measures the responsiveness of demand to changes in price. The most price elastic bike is one with a highly responsive demand to changes in price.
Step-by-step explanation:
In economics, the concept of price elasticity measures the responsiveness or sensitivity of demand for a product to changes in its price. The most price elastic bike would be one that has a highly responsive demand to changes in price. This means that even small changes in price will result in a significant change in the quantity demanded.
For example, if the price of a particular bike decreases slightly, and as a result, the quantity demanded increases significantly, then we can say that the demand for that bike is price elastic. On the other hand, if a bike has an inelastic demand, the quantity demanded will not change much in response to price changes.
Therefore, the most price elastic bike would be one that has a high availability of substitutes, as this would make the demand more sensitive to changes in price.