How sensitive consumer demand and the firm's revenues are to changes in the product's price is called

Question

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Price elasticity of demand measures the responsiveness of quantity demanded to changes in price. A higher price elasticity of demand means that consumers are more sensitive to price changes, and a lower price elasticity of demand means that consumers are less sensitive to price changes. Understanding the price elasticity of demand can help firms make better pricing decisions and predict changes in revenue.

How Sensitive Consumer Demand and the Firm's Revenues Are to Changes