Final answer:
The student's question pertains to the 'price elasticity of demand', which measures the responsiveness of the quantity demanded to price changes.
Step-by-step explanation:
The concept being described is price elasticity of demand, which is the percentage change in the quantity of a good or service demanded divided by the percentage change in its price.
In economics, understanding the price elasticity is crucial as it helps to determine how the quantity demanded of a product will be affected when its price changes. This concept is not only important for pricing strategies but also important for evaluating the potential impact of economic policies and market conditions. A higher elasticity indicates that the quantity demanded is significantly sensitive to price changes, while a lower elasticity means that the demand is relatively inelastic, or less responsive to price changes.
The subject of this question is Business and it is related to the concept of price elasticity. Price elasticity of demand is the percentage change in the quantity demanded of a good or service divided by the percentage change in its price. It helps measure the responsiveness of demand to changes in price.