Which of the following matches this definition? "Adjusting prices to current conditions: for example, a status-conscious market that insists on products with established reputations will be inelastic, allowing for more pricing freedom than a price-conscious market."
A) Price elasticity of consumer demand
B) Price inelasticity of consumer demand
C) Price elasticity of business consumers
D) Price inelasticity of business consumers

Question

Quizplus · Accepted Answer

The concept described in the sentence is price elasticity of consumer demand, which refers to the extent to which changes in price affect the quantity demanded by consumers. If a market is considered elastic, small changes in price will cause a large change in demand, whereas an inelastic market will not be affected by price changes as much. The sentence describes the difference between a status-conscious market (inelastic) and a price-conscious market (elastic), and how that impacts pricing strategies.

Which of the Following Matches This Definition? "Adjusting Prices to Current