The percentage change in sales relative to the percentage change in price is:
A) Volatile demand
B) Market demand
C) Final demand
D) Demand elasticity
E) Price elasticity

Question

Quizplus · Accepted Answer

The percentage change in sales relative to the percentage change in price is called demand elasticity, which measures how responsive consumers are to a change in price. If demand is elastic, a small change in price will have a large change in sales, and if demand is inelastic, a change in price will have a smaller effect on sales. Therefore, D, Demand elasticity, is the best choice.

The Percentage Change in Sales Relative to the Percentage Change