If the Price Elasticity of Demand Is Computed for Two

question 219

Multiple Choice

If the price elasticity of demand is computed for two products, and product A measures .79, and product B measures 1.6, then:

• A) product A is more price elastic than product B.
• B) product B is more price elastic than product A.
• C) consumers are more sensitive to price changes in product A than in product B.
• D) product B is more price inelastic than product A.
• E) products A and B must be substitutes.

---

Definitions:

Need for Achievement

A psychological trait that drives an individual to pursue and attain goals, often associated with a high level of motivation and ambition.

Irrational

Lacking reason or logical thinking; actions or beliefs that are not based on logical reasoning or clear thinking.

Self-destructive Behaviors

Actions undertaken by an individual that intentionally or inadvertently cause harm or damage to themselves, often as a way of coping with distress or psychological pain.

Psychoanalysis

A therapeutic approach based on Freudian theories focusing on unconscious motivations and conflicts.