Asked by Vukosi Ellon on May 28, 2024
Verified
Demand is said to be price elastic if
A) the price of the good responds substantially to changes in demand.
B) demand shifts substantially when income or the expected future price of the good changes.
C) buyers do not respond much to changes in the price of the good.
D) buyers respond substantially to changes in the price of the good.
Price Elastic
Describes a situation where the demand for a product changes significantly in response to a change in the product's price.
Demand
The quantity of a product or service that consumers are willing and able to purchase at various price levels, at a given point in time.
- Pinpoint the aspects of demand elasticity, which includes inelastic and elastic demand variations.
- Differentiate between goods with elastic and inelastic demand based on characteristics such as necessity, luxury, and availability of substitutes.
Verified Answer
TO
Trevor OuimetMay 30, 2024
Final Answer :
D
Explanation :
Demand is considered price elastic when the quantity demanded changes significantly in response to changes in price. This means that consumers are sensitive to price changes, and a small change in price leads to a large change in the quantity demanded.
Learning Objectives
- Pinpoint the aspects of demand elasticity, which includes inelastic and elastic demand variations.
- Differentiate between goods with elastic and inelastic demand based on characteristics such as necessity, luxury, and availability of substitutes.