If the Percentage Change in the Quantity Demanded of a Good

question 95

Multiple Choice

If the percentage change in the quantity demanded of a good is less than the percentage change in price, price elasticity of demand is:

• A) elastic.
• B) inelastic.
• C) perfectly inelastic.
• D) unitary elastic.

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Definitions:

Producer Surplus

The disparity between what sellers are prepared to accept for a product or service and the amount they actually get.

Antitrust Laws

Legislation enacted by the government to prevent monopolies and to foster competition in the marketplace.

Illegal

Activities or actions that are forbidden by law or statute, punishable by fines, imprisonment, or other sanctions.

Price Discount

A reduction from the original or listed price of a product or service, typically offered to stimulate sales or clear inventory.