If the Price Elasticity of Demand Is Computed for Two

question 94

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

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Definitions:

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