A Price Elastic Demand Exists If a 10 Percent Change

question 52

Multiple Choice

A price elastic demand exists if a 10 percent change in the price of a good results in a percentage change (in absolute value terms) in quantity demanded that is:

• A) less than 0.
• B) greater than 0 but less than 10.
• C) equal to 10.
• D) greater than 10.

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Definitions:

Disposable Income

Financial means left for households to spend and save after income tax obligations.

APC

Average Propensity to Consume refers to the ratio of consumption expenditure to income.

APC

Commonly stands for Armored Personnel Carrier, but in economic contexts, it can refer to the Average Propensity to Consume, which indicates the fraction of income that is spent on consumption.

APS

Acronym for Accumulated Plan Savings, often related to retirement saving plans; or it could also mean Anti-Phishing Security, depending on the context.