Procter & Gamble dropped the price of Pringle Potato Chips due to price competition and consumer demand. As a result of the price reduction, Procter & Gamble increased unit sales and earnings by 10 percent due to which of the following?

a. market share fluctuations
b. increases in both supply and demand
c. elasticity of demand
d. price wars with other snack food makers

Ans: c. elasticity of demand