We need to calculate the price elasticity of demand because:
A)producers need to know that consumers are more sensitive to price changes for some goods and services than for others.
B)producers need to be able to predict the future preferences of their customers.
C)producers need to know that consumers will have the same response to a price change regardless of the good or service.
D)producers need to understand what it is their customers demand the most.

Question

Quizplus · Accepted Answer

Price elasticity of demand helps producers determine how much their customers' demand will change in response to a price change, which is important information for deciding how to set prices for different goods and services. This information helps producers understand which goods and services are more sensitive to price changes, and adjust their pricing strategies accordingly.

We Need to Calculate the Price Elasticity of Demand Because