Under Which of the Following Price Elasticities Will a Decrease

question 34

Multiple Choice

Under which of the following price elasticities will a decrease in price lead to the greatest increase in expenditures by consumers?

• A) 0
• B) 0.3
• C) 1.0
• D) 1.8
• E) 2.3

---

Definitions:

Concern for Efficiency

The focus on maximizing productivity and minimizing waste in processes or systems to achieve better outcomes or outputs.

Open System

A system that interacts with its environment by exchanging energy, materials, or information.

Subsystems

Smaller, component systems within a larger system, each having its own function but contributing to the operation and success of the whole.

Free-Agent Economy

An economy in which people change jobs more often, and many work on independent contracts with a shifting mix of employers.