The Larger the Coefficient of Price Elasticity of Demand for a Product

question 390

Multiple Choice

The larger the coefficient of price elasticity of demand for a product, the

• A)larger the resulting price change for an increase in supply.
• B)more rapid the rate at which the marginal utility of that product diminishes.
• C)less competitive will be the industry supplying that product.
• D)smaller the resulting price change for an increase in supply.

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Definitions:

Six-Digit Coding

A reference to standardized codes, such as those in classification systems, that use six digits to categorize detailed information.

Industry Subsector

A specific, defined part of a broader industry, characterized by a unique set of products, services, or manufacturing processes.

NAICS

The North American Industry Classification System is a norm employed by Federal statistical bodies to categorize business entities.

Triclosan

An antimicrobial and antifungal agent found in some consumer products, including toothpaste and hand sanitizer, which has raised health and environmental concerns.