The price elasticity of demand measures the responsiveness of the quantity demanded to changes in its price. Therefore, the quantity demanded this good increases by 6%.
Price elasticity of demand is a measure of changes in consumption of a product to changes in price. Expressed mathematically, this looks like this: Price elasticity of demand = percent change in quantity demanded / percent change in price. The price elasticity of demand for a good is a measure of how sensitive the quantity demanded is to its price. When prices rise, the quantity demanded of almost all goods falls, but some goods fall more than others.
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