How much do you know about price elasticity of demand and its impact on business...

The degree to which a change in quantity demanded affects the price of a good or service

The degree to which a change in price affects the quantity demanded of a good or service (correct)

The degree to which a change in supply affects the price of a good or service

The degree to which a change in demand affects the quantity supplied of a good or service

Consumers are highly sensitive to changes in price (correct)

Consumers are not sensitive to changes in price

The product is a necessity

The product is a luxury

Businesses can set any price they want without affecting sales volume

Businesses should only sell products with a high price elasticity of demand

Businesses should only sell products with a low price elasticity of demand

Businesses may need to adjust prices in order to maintain sales volume (correct)