Price elasticity measures the ________.
A) price level at which a product or service covers its variable costs
B) amount that demand rises or falls with changes in price
C) impact of changes in the cost of production on the overall price of a commodity
D) price level at which a product or service covers its fixed costs

Question

Quizplus · Accepted Answer

Price elasticity measures the responsiveness of demand for a product or service to changes in its price. It measures the amount of increase or decrease in demand that can be expected with a change in price. The other options (A, C, and D) are about pricing strategies and costs, but they do not relate to price elasticity.

Price Elasticity Measures the ________