The measure of customers' price sensitivity,estimated by dividing relative changes in quantity sold by relative changes in price is known as __________________.

Question

Quizplus · Accepted Answer

The measure described in the question is known as price elasticity of demand. It measures the responsiveness of customers to changes in price and helps businesses determine the optimal price point for their products or services. Stability pricing, pricing tactics, auction pricing, and reverse auctions are not direct measures of customers' price sensitivity.

The Measure of Customers' Price Sensitivity,estimated by Dividing Relative Changes