The Greater the Price Elasticity of Demand,the

question 481

Multiple Choice

The greater the price elasticity of demand,the

• A) more likely the product is a necessity.
• B) smaller the responsiveness of quantity demanded to a change in price.
• C) greater the percentage change in price over the percentage change in quantity demanded.
• D) greater the responsiveness of quantity demanded to a change in price.

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Definitions:

Output of Zero

A theoretical condition or benchmark where no goods or services are being produced or output is completely halted.

Average Total Cost

The cost per unit represented by dividing the entire production cost by the quantity of units produced.

Price of Labor

The wage rate or compensation paid to employees for their work or services.

Units of Output

The quantity or number of items produced or services rendered in a given time period.