Price elasticity refers to the:

Price elasticity refers to the relationship between price change and consumer demand. It measures how sensitive the quantity demanded of a good or service is to changes in its price. When the price of a product changes, price elasticity helps marketers and businesses understand whether consumer demand will increase or decrease as a result.

For instance, if a product is deemed elastic, a small change in price will lead to a significant change in the quantity demanded. Conversely, if a product is inelastic, changes in price will have little effect on demand. This concept is crucial for businesses to set optimal pricing strategies, forecast sales, and make informed decisions about promotions or pricing adjustments.

Other options do not capture the essence of price elasticity accurately. The second option, which involves a product's ability to retain its value, relates more to asset valuation rather than consumer purchasing behavior in relation to price changes. The third option discussing the effect of discounting on sales, while relevant to pricing strategies, does not encompass the broader relationship represented by price elasticity. Similarly, the fourth option about the impact of marketing promotions focuses on marketing tactics rather than the fundamental economic principle of price sensitivity in consumer demand.