<h3>(4) A measure of how consumers react to a change in price.</h3><h3 />
Explanation:
The elasticity of demand is simply the change in demand due to change in the price of a product.
As we know demand is proportionate to the price of a product, when products are produced at a lower price, there is an increase in the demand.Similarly, if products are produced at a higher price, the demand also falls.
The elasticity of demand is a measure of how consumers react to a change in price. It helps consumers to understand the market price of a commodity and thereby, reacts according to the price.
