A Product with an Inelastic Demand Means That

question 106

Multiple Choice

A product with an inelastic demand means that

• A) consumers are relatively sensitive to a change in the price of the product.
• B) consumers are relatively insensitive to a change in the quantity demanded.
• C) producers are relatively sensitive to a change in the quantity demanded.
• D) producers are relatively insensitive to a change in the price of the product.
• E) consumers are relatively insensitive to a change in the price of the product.

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Definitions:

Sample mean

The average value of the sample set, calculated as the sum of all observations divided by the number of observations.

Population proportion

The ratio of members in a population that have a particular attribute or characteristic, represented as a fraction or percentage of the total.

Standard error of the mean

The standard deviation of the sampling distribution of the mean, indicating the variability of sample means around the population mean.

Average hourly income

The mean amount of money earned by an individual or group per hour of work.