If a Large Percentage Increase in the Price of a Good

question 141

Multiple Choice

If a large percentage increase in the price of a good results in a small percentage reduction in the quantity demanded of the good, demand is said to be

• A) of unitary elasticity.
• B) relatively inelastic.
• C) relatively elastic.
• D) perfectly elastic.

---

Definitions:

Businesses

Entities engaged in commercial, industrial, or professional activities with the goal of generating profits.

Product Market

A marketplace where final goods or services are offered to consumers, businesses, and the public sector.

Footballs

Spherical objects used in the game of football (soccer) or oval-shaped objects used in American football, both designed for being kicked, thrown, or carried to score points.

Labor

The physical and mental effort used in the production of goods and services.