Asked by Sarah Gascon on Jul 24, 2024
Verified
If the price of leeks falls by $2 per pound, then the demand for leeks will rise by 10 pounds.Therefore we can conclude that the demand for leeks is elastic.
Demand Elasticity
A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of consumers to price changes.
Price Fall
A reduction in the market price of a good or service, which can influence consumer behavior and economic conditions.
- Attain knowledge on the concept and calculation methods of price elasticity of demand.
Verified Answer
PN
Patricia NicoleJul 25, 2024
Final Answer :
False
Explanation :
The statement does not provide enough information to determine elasticity, as it lacks the original price and quantity demanded to calculate the percentage change in quantity demanded over the percentage change in price. Elasticity depends on the relative changes, not just absolute changes.
Learning Objectives
- Attain knowledge on the concept and calculation methods of price elasticity of demand.