In pricing models,elasticity of demand is an input with specifies the:
A) range of demand
B) level of demand
C) sensitivity of price to changes in demand
D) sensitivity of demand to changes in price

Question

In pricing models,elasticity of demand is an input with specifies the:
A) range of demand 
B) level of demand 
C) sensitivity of price to changes in demand 
D) sensitivity of demand to changes in price

Quizplus · Accepted Answer

Elasticity of demand is a measure of how sensitive the quantity demanded of a good is to a change in price. It specifies the degree of responsiveness of the quantity demanded to a change in price of the product. A high elasticity of demand means that a small change in price will result in a large change in the quantity demanded, while a low elasticity of demand means that a change in price will have little impact on the quantity demanded. Therefore, the correct answer is D.

In Pricing Models,elasticity of Demand Is an Input with Specifies