Which measure indicates the percentage change in quantity demanded caused by a percentage change in price?
Correct answer: C. Price elasticity of demand
- A. Income elasticity of demand
- B. Cross elasticity of demand
- C. Price elasticity of demand
- D. Advertising elasticity of demand
Explanation
Price elasticity of demand compares the percentage change in quantity demanded with the percentage change in price. Income elasticity relates demand to income, while cross elasticity compares two products.
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Marketing begins with identifying customer needs and ends with creating, communicating and delivering value through exchange. Coverage includes market research, consumer behaviour, segmentation, targeting, positioning and the marketing mix of product, price, place and promotion, with marketing distinguished from selling and advertising.
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