In Which of the Cases Given Below Will the Elasticity

question 17

Multiple Choice

In which of the cases given below will the elasticity of demand for workers who produce yo-yos be most inelastic? The price elasticity of demand for yo-yos is

• A) 5, and labor's share of total costs is 20 percent.
• B) 5, and labor's share of total costs is 75 percent.
• C) .1, and labor's share of total costs is 20 percent.
• D) .1, and labor's share of total costs is 75 percent.

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Definitions:

Fair Competition

A market condition in which competitors have equal opportunities to offer goods or services, with minimal barriers to entry.

Consumer Rights

The legal entitlements and protections afforded to consumers, which may include the right to safety, the right to be informed, the right to choose, and the right to be heard.

S Corporation

A special type of corporation in which the owners are taxed as partners.

Flexibility

The ability to adapt to new, different, or changing requirements.