If Demand Changes Greatly with a Small Change in Price,we

question 95

Multiple Choice

If demand changes greatly with a small change in price,we say the demand is ________.

• A)inelastic
• B)variable
• C)elastic
• D)value-based
• E)fixed

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Definitions:

Demand and Supply of Wheat

The relationship between the quantity of wheat that producers are willing to sell at various prices and the quantity that consumers are willing to buy.

Temporary Price

A price set for a product or service for a limited period before it returns to its normal level, often used in sales promotions.

Surplus

The situation in which the quantity supplied of a good exceeds the quantity demanded, often due to a price being set above the equilibrium level.

Shortage

A market condition where the demand for a product exceeds its supply, often leading to price increases.