Consumers who are more sensitive to changes in price suffer a greater loss of consumer surplus from any given price increase
Indicate whether the statement is true or false
False. Consumers who are more sensitive to the price increase will reduce their purchase of the good by a greater extent than those who are not price sensitive. As a result, they incur a smaller loss of consumer surplus.
Economics
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The difference between the marginal social cost and the marginal private cost equals the
A) cost of producing an additional unit of a good. B) marginal external benefit. C) marginal external cost. D) marginal private benefit.
Economics
The Federal Reserve can increase aggregate demand by:
A. Reducing the money supply B. Reducing the discount rate C. Raising the reserve requirement D. Selling government securities in the open market
Economics