If the Absolute Price Elasticity of Demand for a Product

question 331

Multiple Choice

If the absolute price elasticity of demand for a product is less than 1, then

• A) the absolute price elasticity of demand is inelastic and consumers are relatively insensitive to price changes.
• B) the absolute price elasticity of demand is inelastic and consumers are relatively sensitive to price changes.
• C) the absolute price elasticity of demand is elastic and consumers are relatively insensitive to price changes.
• D) the absolute price elasticity of demand is elastic and consumers are relatively sensitive to price changes.

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Definitions:

Task System

A labor system in which enslaved people were assigned specific tasks to complete every day, after which they had some degree of autonomy.

British Government

The political system in the United Kingdom, consisting of the monarch, the Parliament, and the Prime Minister.

Human Reason

The cognitive faculty of humans that enables them to think, understand, and form judgments by a process of logic.