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:

Inferior Good

A type of good for which demand decreases as the income of consumers increases, inversely related to the economic well-being of consumers.

College Tuition

The fee that students pay to attend a college or university, covering costs such as instruction, facilities, and sometimes room and board.

Supply

The total amount of a specific good or service that is available to consumers at a given price level and time.

Elastic

Describing a situation where the demand or supply for a good or service is sensitive to changes in price.