The price elasticity of demand is typically negative because
A. as price decreases, quantity demanded decreases.
B. as price decreases, quantity demanded increases.
C. as price decreases, demand decreases. as price decreases, demand increases.
D. consumers rarely respond to a change in price.
Answer: B. as price decreases, quantity demanded increases.
Economics
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In the price system
A) prices are set by government action. B) consumers alone set the price. C) producers alone set the price. D) prices are set by the interaction of supply and demand.
Economics
A rational consumer will always shift a dollar from a good for which the marginal-utility- to-price ratio is lower to one for which the marginal-utility-to-price ratio is higher
Indicate whether the statement is true or false
Economics