Final answer:
The price elasticity of demand is a measure of how responsive the quantity demanded is to a change in price. The given price elasticity of demand is -2.5, indicating that a 1% change in price leads to a 2.5% change in quantity demanded.
Step-by-step explanation:
The price elasticity of demand is a measure of how responsive the quantity demanded of a product is to a change in its price. It is calculated by dividing the percentage change in quantity demanded by the percentage change in price. In this case, we can see that the price elasticity of demand is given as -2.5, which means that for every 1% change in price, the quantity demanded will change by 2.5%. This value is negative because price and quantity demanded move in opposite directions along the demand curve.