Answer:
a) price elasticity
Explanation:
Price elasticity refers to how the quantity demanded of a product or service changes in response to a change in its price. In this case, the increase in demand for Kristine's paintings after lowering the price indicates that there is price elasticity at play.
Lowering the price of her paintings led to a higher quantity demanded, showing that the demand for her paintings is sensitive to changes in price. This concept is essential for businesses to understand as it can help them determine optimal pricing strategies to maximize sales and revenue.
