Answer to Question #302532 in Management for jean

Question

Considering what you have learned in your Basic Microeconomics subject, what is meant when it is said that a market is “sensitive” to a price change? What is meant when it is said that a market is “insensitive” to a price change?

Answer 1

The macroeconomic market is said to be sensitive to price change when the products or service demands change due to price changes. On the other hand, market insensitive is when the purchase and demand for products or services remain the same or increase even if the price changes.