________ describes how responsive demand will be to a change in price.
A)Price elasticity
B)Break-even pricing
C)The break-even chart
D)Target costing
E)A supply curve

Question

Quizplus · Accepted Answer

Price elasticity describes the degree of responsiveness of demand to a change in price. The higher the price elasticity, the greater the change in quantity demanded given a change in price. More elastic goods have more substitutes available and the consumer is more sensitive to a change in price. On the other hand, less elastic goods have fewer substitutes and the consumer is less sensitive to a change in price.

________ Describes How Responsive Demand Will Be to a Change