Final answer:
Price elasticity of demand measures the responsiveness of quantity demanded to price changes. If a business finds that demand for its good is very price elastic, a small change in price will cause a relatively large change in quantity demanded.
Step-by-step explanation:
The responsiveness of quantity consumers buy to price changes is measured by the concept of price elasticity of demand. Price elasticity measures how much quantity demanded changes based on a change in price. If a business finds that the demand for its good is very price elastic, it means that a small change in price will cause a relatively large change in quantity demanded.
In other words, consumers are highly responsive to price changes, and a decrease in price will lead to a significant increase in quantity demanded.