When Demand Is Elastic

question 112

Multiple Choice

When demand is elastic

• A)the percentage change in quantity is greater than the percentage change in price.
• B)a price increase lowers total revenue.
• C)buyers are sensitive to price changes.
• D)the elasticity coefficient is greater than one.
• E)All of the statements are true.

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Definitions:

Liability

An obligation or debt that a company owes to others, which must be settled through the transfer of assets or services.

Expense

An economic outflow or the consumption of resources resulting from the operations of a business.

Creditor

An individual, financial institution, or company to whom money is owed by a debtor or borrower.

Asset

An asset represents a resource that is owned or controlled by the company with the expectation that it will provide future economic benefits.