Question

Price elasticity refers to the:_________ a) change in the demand for a good in response to a change in income. b) rate at which product prices vary in response to changes in customer demand. c) range of production costs that change as a direct function of the availability of raw materials. d) rate at which demand for a product or service fluctuates with price change. e) numerical measure of the responsiveness of the supply of a product to a change in its production cost.

Answer 1

Answer: Rate at which demand for a product or service fluctuates with price change.

Explanation:

Price elasticity of demand is a tool used to calculate the level of consumer responsiveness to changes in price. Price elasticity of demand is used to ascertain if the consumers present in a market are price responsive or not.