If the Demand for a Good Is Elastic,then

question 135

Multiple Choice

If the demand for a good is elastic,then

• A) people do not change the quantity they demand when the price of the good changes.
• B) a change in price leads to a smaller percentage change in the quantity demanded.
• C) people substantially decrease the quantity of the good they buy if its price increases by a small percentage.
• D) a change in the quantity demanded is smaller than the change in price.
• E) the quantity demanded divided by the price exceeds 1.00.

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Definitions:

Dichotomous

Relating to or involving a division or contrast between two completely opposed or different things.

Dependent Variables

Variables in research that are expected to change as a result of an experiment's independent variable manipulation.

Test Markets

Regional markets or demographic groups used for launching new products to evaluate consumer response before a national rollout.

Competitors

Businesses or individuals that compete within the same market for resources and customers.