Price elasticity measures the ________.
A)amount customers are willing to pay for a product or service
B)effect of price changes on sales volume
C)number of units a company is willing to sell
D)amount of competition in a given industry

Question

Quizplus · Accepted Answer

Price elasticity measures the effect of price changes on sales volume, meaning how much a change in price affects the demand for a product or service. It does not measure how much customers are willing to pay, the number of units a company is willing to sell, or the amount of competition in a given industry.

Price Elasticity Measures the ________