Which of the following is a measure of the sensitivity of customers to changes in price?

Question

Quizplus · Accepted Answer

The price elasticity of demand measures the responsiveness of quantity demanded to changes in price. It indicates how sensitive customers are to a change in price. A high price elasticity of demand means that a small change in price leads to a large change in quantity demanded, indicating that customers are price-sensitive.

Which of the Following Is a Measure of the Sensitivity