What Kind of Demand Is Seen When a Small Change

question 109

Multiple Choice

What kind of demand is seen when a small change in price produces a large change in demand?

• A)Elastic
• B)Inelastic
• C)Relative
• D)Rigid
• E)Dynamic

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Definitions:

Public Sector

The part of the economy comprised of government services and enterprises, including infrastructure, public education, and healthcare.

Economic Efficiency

A state where resources are allocated in a way that maximizes the production of goods and services.

External Cost

Uncompensated costs that individuals or firms impose on others outside of market transactions, often associated with pollution.