If the Price Elasticity of Demand for a Good Is

question 21

Multiple Choice

If the price elasticity of demand for a good is less than one in absolute terms,we say consumers of this good

• A)are not very sensitive to price.
• B)are not very sensitive to the quantity they demand.
• C)are very sensitive to price.
• D)are elastic.

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Definitions:

Principal

Principal refers to a main party to a transaction, contract, or financial instrument, as opposed to an agent who acts on someone else's behalf.

Agent

A person or entity authorized to act on behalf of another (known as the principal) in legal or business matters.

Authority

The legal power or right given to an individual or entity to carry out certain actions or to make decisions.

Detrimental

Causing harm or damage, often used to describe actions or conditions that negatively affect someone or something.