If the Price Elasticity of Demand Is Computed for Two

question 219

Multiple Choice

If the price elasticity of demand is computed for two products, and product A measures .79, and product B measures 1.6, then:

• A) product A is more price elastic than product B.
• B) product B is more price elastic than product A.
• C) consumers are more sensitive to price changes in product A than in product B.
• D) product B is more price inelastic than product A.
• E) products A and B must be substitutes.

---

Definitions:

Craft Unions

Organizations of skilled workers in the same trade or craft aiming to negotiate collectively for better wages, working conditions, and hours.

Industrial Unions

Unions that organize workers across all crafts and trades within a single industry.

New Deal Era

A period in American history during the 1930s in which President Franklin D. Roosevelt implemented a series of economic interventions designed to recover from the Great Depression, including job creation programs, financial regulations, and social welfare initiatives.

Organized Labor

Associations of workers united to protect and further their rights and interests; also known as labor unions.