​Figure 53

question 116

Multiple Choice

​Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market.
-If a product has an elastic demand, it means that:

• A)consumers are relatively sensitive to a change in the price of the product.
• B)consumers are relatively insensitive to a change in the quantity demanded of the product.
• C)consumers are relatively insensitive to a change in the price of the product.
• D)producers are relatively insensitive to a change in the price of the product.
• E)producers are relatively sensitive to a change in the quantity demanded of the product.