Asked by Gurlivleen Singh on Apr 28, 2024
Verified
A measure of price sensitivity that gives the percentage change in quantity demanded in response to a percentage change in price is known as
A) marginal revenue.
B) price elasticity of demand.
C) profit maximization.
D) break-even analysis.
E) price elasticity of supply.
Price Elasticity of Demand
A measure of how much the quantity demanded of a good responds to a change in the price of that good.
- Examine the importance of price elasticity of demand within the context of setting prices.
Verified Answer
JB
Jaime BermudezMay 03, 2024
Final Answer :
B
Explanation :
Price elasticity of demand measures how the quantity demanded of a good responds to a change in the price of that good, calculated as the percentage change in quantity demanded divided by the percentage change in price.
Learning Objectives
- Examine the importance of price elasticity of demand within the context of setting prices.
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