Many consumers will buy more of a product if its price goes down,and less of a product if its price goes up.This is referred to as:
A)macroeconomics
B)elasticity
C)inelasticity
D)reward theory
E)trend analysis

Question

Quizplus · Accepted Answer

The scenario described is an example of price elasticity, which is the measure of how responsive consumers are to changes in the price of a product. If a small change in price leads to a large change in the quantity demanded, the product is considered to be elastic. If a change in price leads to little to no change in the quantity demanded, the product is considered to be inelastic. Therefore, B - elasticity - is the best choice.

Many Consumers Will Buy More of a Product If Its