If the Price Elasticity of Demand Is Elastic, Then

question 25

Multiple Choice

If the price elasticity of demand is elastic, then:

• A) Ed
• B) consumers are relatively not very responsive to a price increase.
• C) an increase in the price will increase total revenue.
• D) there are likely a large number of substitute products available.

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Definitions:

Rubber Erasers

Small, often rubbery objects used for removing pencil and sometimes ink marks from paper.

Consumer Surplus

The disparity between the total cost consumers are inclined and able to bear for a good or service and the total cost they actually bear.

Consumer Surplus

The economic benefit consumers receive when they pay a price below what they were willing to pay, reflecting consumer satisfaction in economic transactions.

Consumer Surplus

The disparity between the ideal payment consumers are ready to make for a good or service and the real amount paid.