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.
D
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Consider the above figure. At a price level of 150
A) total planned production exceeds total planned real expenditures. B) total planned real expenditures exceed total planned real production. C) the price level would rise. D) inventories of unsold goods decline.
If a person is risk neutral, then she
A) is indifferent about playing a fair game. B) will pay a premium to avoid a fair game. C) has a horizontal utility function. D) has zero marginal utility of wealth.