The sensitivity of consumers to price changes is measured by the ________.
A) law of demand
B) sales to price coefficient
C) coefficient of elasticity
D) price elasticity of demand

Question

Quizplus · Accepted Answer

The price elasticity of demand measures the responsiveness of consumers' quantity demanded to changes in price. It allows businesses to understand how sensitive consumers are to price changes and adjust their pricing strategies accordingly. The other answer options do not specifically measure this sensitivity to price changes.

The Sensitivity of Consumers to Price Changes Is Measured by the ________