________ describes how responsive demand will be to a change in price.
A)Price elasticity
B)Breakeven pricing
C)The breakeven chart
D)Target costing
E)Supply

Question

Quizplus · Accepted Answer

Price elasticity measures the responsiveness of demand to a change in price. It indicates how much the quantity demanded will change in response to a change in price. A high price elasticity suggests that consumers are very sensitive to price changes and will significantly reduce their demand if the price increases, while a low elasticity suggests that consumers are relatively insensitive to price changes and will continue to purchase the product even if the price increases.

________ Describes How Responsive Demand Will Be to a Change