Final answer:
Price elasticity is the impact of a change in a product's price on its relative expensiveness.
Step-by-step explanation:
The impact that a change in a product's price has on its relative expensiveness is known as price elasticity.
Price elasticity refers to the responsiveness of demand for a product to a change in its price. It is measured by the percentage change in quantity demanded divided by the percentage change in price.
For example, if a 10% increase in the price of a product leads to a 5% decrease in quantity demanded, the price elasticity would be -0.5. This indicates that the product is relatively inelastic, meaning that a price change has a smaller impact on demand.