This term refers to the relationship between the change in the use of an item and the price of that item.

Question

Quizplus · Accepted Answer

Demand elasticity refers to the responsiveness of buyers to a change in the price of a good or service. If the demand is elastic, it means that a small change in price will result in a significant change in the quantity demanded, whereas if it is inelastic, the change in quantity demanded will be minimal. Thus, knowing the demand elasticity of a good can help businesses make pricing decisions and predict sales.

This Term Refers to the Relationship Between the Change in the Use