Cliff is struggling with the price of produce at his well-established produce markets. The reputation of the markets attracts repeat customers from a 50-mile radius. Recently, local farmers started increasing produce prices for him due to the upsurge in gas prices. Now, Cliff feels it is time to pass the costs onto his customers. Which of the following should Cliff estimate to determine the effect of price changes?
A) Price elasticity
B) Break-even point quantity
C) Fixed costs
D) Reference price
E) Markup percentage

Question

Quizplus · Accepted Answer

The price elasticity for a product can be estimated by using statistical techniques to analyze how sales have changed in the past when prices changed. Price elasticity is the percentage change in quantity sold divided by the percentage change in price.

Cliff Is Struggling with the Price of Produce at His