"The price elasticity of demand is a measure of how sensitive demanders are to changes in the price of a product." Is this statement true or false?
What will be an ideal response?
The assertion is true. All elasticities measure the sensitivity, or responsiveness, of some variable to a change in an influence. The price elasticity of demand measures how strongly demanders respond to a change in the price of the good or service.
You might also like to view...
Which of the following statements is correct?
a) The Federal Reserve's actions are subject to executive branch control. b) Politically controlled banks are better at fighting inflation than independent central banks. c) The Federal Reserve is considered to be an independent central bank. d) The Federal Reserve System is not subject to Congressional oversight.
What is the definition of a discouraged worker?
A) a member of the labor force who is working but is discouraged about his prospects for advancement within the company B) a member of the labor force who is working but is discouraged about the performance of his company within the industry C) a person who has dropped out of the labor force because he is discouraged about his prospects for employment D) an employed member of the labor force who is discouraged about his pay