Asked by
Abdullrhman Albahri
on Oct 12, 2024
Verified
When demand is elastic
A) the percentage change in quantity is greater than the percentage change in price.
B) a price increase lowers total revenue.
C) buyers are sensitive to price changes.
D) the elasticity coefficient is greater than one.
E) All of the statements are true.
Elastic
Describing a situation in which the supply or demand for a good or service is highly responsive to changes in price.
Elasticity Coefficient
A measure reflecting the responsiveness of the quantity demanded or supplied of a good to a change in its price.
Price Increase
A rise in the cost of goods or services over time.
- Acquire knowledge on the elasticity of demand and the various factors that influence it.
- Discriminate between demand that is elastic and demand that is inelastic.
- Acquire knowledge on how variations in price influence total income in relation to elasticity.
Verified Answer
MS
Learning Objectives
- Acquire knowledge on the elasticity of demand and the various factors that influence it.
- Discriminate between demand that is elastic and demand that is inelastic.
- Acquire knowledge on how variations in price influence total income in relation to elasticity.