If the Demand for a Product That Labor Produces Is

question 57

Multiple Choice

If the demand for a product that labor produces is highly elastic, a small percentage increase in price will __________ quantity demanded of the product by a relatively __________ percentage, which, in turn, will __________ the demand for the labor that produces the product.

• A)increase; small; slightly reduce
• B)decrease; small; greatly increase
• C)decrease; large; greatly increase
• D)decrease; large; greatly reduce
• E)increase; large; greatly reduce

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Definitions:

Utility Function

A mathematical representation that expresses how a consumer's total satisfaction or happiness is influenced by their consumption of different goods and services.

Utility Function

An economic model or formula that reflects the preference, satisfaction, or happiness a consumer obtains from consuming goods and services.

French Fries

A popular food item made by cutting potatoes into strips and deep-frying them until crispy.

Utility Function

A mathematical representation that relates the total utility an individual derives from consuming different bundles of goods and services.