A Measure of the Responsiveness of Demand for a Product

question 57

Multiple Choice

A measure of the responsiveness of demand for a product to a change in price is known as

• A) the demand to price ratio.
• B) purchasing power parity.
• C) predatory pricing.
• D) demand function of pricing.
• E) price elasticity of demand.

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Definitions:

Profit Center

A business unit or division that is responsible for generating its own revenue and profit, with its financial performance being tracked separately.

Investment Center

A segment or area of a business responsible for its own revenue, expenses, and assets, and its performance is measured by its return on investment.

Fixed Expenses

These are costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Return On Investment

A measure used to evaluate the efficiency of an investment or compare the efficiencies of several different investments.