Price elasticity of demand measures what?

Price elasticity of demand is a measure that specifically looks at how much the quantity demanded of a good changes in response to a change in its price. When the price of a product increases or decreases, the proportionate change in the quantity demanded provides insight into consumer behavior. If demand is elastic, a small change in price will lead to a significant change in the quantity demanded. Conversely, if demand is inelastic, quantity demanded will change very little in response to price changes. This concept helps businesses and policymakers understand how pricing decisions might affect overall sales and demand for products in the market.

The other concepts mentioned, such as supply factors affecting price, total revenue from sales, and production costs, do not directly capture the relationship between price changes and consumer demand, which is the fundamental aspect of price elasticity of demand.