What term describes how much quantity demanded responds to a change in price?

The term that captures how much quantity demanded responds to a change in price is known as elasticity of demand. This concept measures the degree to which consumers adjust their purchasing behaviors in relation to price changes. When demand is elastic, a small change in price results in a significant change in the quantity demanded. Conversely, when demand is inelastic, price changes have little effect on the quantity demanded. Elasticity of demand is crucial for understanding consumer behavior and guiding pricing strategies, as it allows businesses to predict how changes in pricing might impact their sales volumes and revenue.

Price sensitivity and demand responsiveness relate to similar concepts but do not specifically quantify the relationship in the same rigorous manner as elasticity of demand. Consumer surplus, on the other hand, refers to the difference between what consumers are willing to pay for a good and what they actually pay, which is a separate aspect of consumer economics. Thus, the concept of elasticity of demand most accurately describes the relationship between price changes and the quantity demanded.