A measure of the responsiveness of demand for a product to change in price is referred to as
A) arbitrage demand.
B) predatory pricing.
C) price elasticity of demand.
D) experience curve pricing.

Question

Quizplus · Accepted Answer

The price elasticity of demand is a measure of the responsiveness of demand for a product to change in price. The elasticity of demand for a product in a given country is determined by a number of factors, of which income level and competitive conditions are the two most important.

A Measure of the Responsiveness of Demand for a Product