The responsiveness or the sensitivity of consumer demand to changes in price is referred to as _____and occurs when consumers buy more or less of a product when the price changes.
A) the break-even point
B) the point of equilibrium
C) unitary revenue
D) asymmetrical demand
E) elasticity of demand

Question

Quizplus · Accepted Answer

The description provided in the question refers to elasticity of demand, which is measured by the percentage change in the quantity demanded in response to a percentage change in price. When a relatively small change in price produces a large change in quantity demanded, demand is said to be elastic. When a relatively large change in price produces only a small change in quantity demanded, demand is said to be inelastic. Therefore, the correct answer is option E, elasticity of demand.

The Responsiveness or the Sensitivity of Consumer Demand to Changes