Price elasticity is defined as:

Price elasticity is defined as:


a.
a situation where prices routinely move up and down in a short period of time.
b.
customers responsiveness or sensitivity to changes in price.
c.
the impact on a products demand when customers are in unique buying situations.
d.
the relative ease with which prices can be changed.
e.
price flexibility pricing strategy used by startup firms.


Answer: b.
customers responsiveness or sensitivity to changes in price.


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