When it comes to measuring consumers' price sensitivity, products are viewed as either
A)elastic or inelastic.
B)fixed or variable.
C)complementary or substitutable.
D)necessary or optional.
E)dynamic or rigid.

Question

Quizplus · Accepted Answer

Products are viewed as either elastic or inelastic in terms of consumer price sensitivity. Elastic products are those for which a change in price results in a significant change in quantity demanded by consumers, while inelastic products are those where a change in price has little to no effect on quantity demanded. Understanding which category a product falls into can inform pricing strategies and help businesses make informed decisions about adjusting prices.

When It Comes to Measuring Consumers' Price Sensitivity, Products Are