What is the term for the responsiveness or the sensitivity of consumer demand to changes in price when consumers buy more or less of a product when the price changes?
A)the break-even point
B)the point of equilibrium
C)asymmetrical demand
D)elasticity of demand

Question

Quizplus · Accepted Answer

Elasticity of demand refers to how much the quantity demanded of a product changes in response to a change in its price. If the quantity demanded changes significantly in response to a change in price, we say the demand is elastic. If it doesn't change much, we say the demand is inelastic. Understanding elasticity of demand is critical for businesses to know how to price their products and how changes in price might affect their bottom line.

What Is the Term for the Responsiveness or the Sensitivity