The Elasticity of Demand Is Used to

question 36

Multiple Choice

The elasticity of demand is used to

• A) determine if consumers will or will not buy a product.
• B) measure how responsive consumers are to a change in price.
• C) determine in what direction the demand curve shifts if income changes.
• D) find the market equilibrium.
• E) determine if a change in price results in a shortage or a surplus.

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Definitions:

Intangible Attributes

Refers to the non-physical features or benefits associated with a product or service, such as brand reputation, service quality, and customer experience.

Tangible Attributes

Physical characteristics or features of a product that can be seen, touched, and measured.

Consumer Needs

The essential requirements and desires that individuals seek to fulfill with products and services.

Political Candidate

An individual who seeks to be elected to a governmental position or office.