Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would estimate price elasticity?
A)"A"
B)"B"
C)"C"
D)"D"
E)"E"

Question

Quizplus · Accepted Answer

Step B, or determining demand, is where a firm would estimate price elasticity. This involves analyzing how price changes affect the quantity of goods demanded by consumers, which helps the firm understand how sensitive its target market is to price changes.

Figure 13-2 Above Represents the Six Steps in Setting Price