If a business finds that demand for its good is very price elastic,it knows that
A) price is very important.
B) price is unimportant.
C) price is unrelated.
D) the effect of price is less important than the impact of the quantity consumers buy.
E) the quantity consumers buy is unimportant.

Question

Quizplus · Accepted Answer

If demand for a product is very price elastic, it means that a small change in price will result in a significant change in the quantity of goods sold. This indicates that customers are very sensitive to price and will only buy the product if it is priced competitively. Therefore, price becomes a crucial factor in determining demand, and businesses need to be mindful of pricing strategies to maximize revenue.

If a Business Finds That Demand for Its Good Is