Asked by
Isaiah Goolsby
on Dec 11, 2024
Verified
When the price elasticity of demand is large, then
A) the product is more likely to be a necessity.
B) the responsiveness of quantity demanded to a change in price is small.
C) the percentage change in price divided by the percentage change in quantity demanded is large.
D) the responsiveness of quantity demanded to a change in price is large.
Price Elasticity
Quantifying the demand shift for an item in response to its price adjustments.
Responsiveness
The ability or tendency of an entity or system to react to changes, stimuli, or feedback from the environment.
- Perceive the effect of price fluctuations on the amount of goods demanded.
Verified Answer
SP
Learning Objectives
- Perceive the effect of price fluctuations on the amount of goods demanded.