5 Questions
Which concept measures the extent to which changes in the price of a good or service will affect the quantity demanded by consumers?
Elasticity of demand
When the price of a good or service remains stable but the demand and quantity increase, what does it indicate?
Elasticity of demand is positive
What happens in a situation of positive price elasticity of demand?
Small price changes cause significant changes in quantity demanded
How can positive price elasticity of demand benefit producers?
By increasing the price without affecting sales
What should producers consider in order to avoid losing market share in a situation of positive price elasticity of demand?
Competitors and market strategy
Test your knowledge on price elasticity with this quiz! Learn about the concept of price elasticity and how changes in price affect consumer demand. Determine whether a given situation indicates positive price elasticity and understand the implications of small price changes.
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