If the Demand for a Product Is Elastic,then

question 69

Multiple Choice

If the demand for a product is elastic,then

• A)The percentage change in quantity demanded is greater than the percentage in price.
• B)The percentage change in price is greater than the percentage change in quantity demanded.
• C)The change in the quantity demanded is greater than the change in income.
• D)Buyers are not very sensitive to a change in price.

---

Definitions:

Corporation

A legal entity that is separate and distinct from its owners, providing limited liability to its shareholders.

Suppliers

Suppliers are businesses or individuals that provide products or services to other businesses or consumers, typically as part of a supply chain.

Agency Problem

In corporations, managers are the agents of stockholders and are often able to take advantage of the relationship by diverting corporate resources to their own use. Excessive pay is the primary example. The general situation is described as the agency problem. Costs associated with controlling the agency problem are agency costs.

Ownership

The legal right or title to an asset or property, with the authority to use, sell, or lease it as the owner sees fit.