Redbox rents DVDs for $1 per day via self-service kiosks located across the United States. The CFO of Redbox wants to identify how responsive consumers are to an increase or decrease in the daily price of a rental. The economic concept the CFO wants to understand is
A) price elasticity of demand.
B) elasticity of supply.
C) changes in demand.
D) changes in supply.

Question

Quizplus · Accepted Answer

The CFO is interested in understanding how changes in price affect the quantity demanded, which is measured by the price elasticity of demand.

Redbox Rents DVDs for $1 Per Day Via Self-Service Kiosks