Which of the Following Statements About the Price Elasticity of Demand

question 207

Multiple Choice

Which of the following statements about the price elasticity of demand is correct?

• A)The elasticity of demand for a good in general is equal to the elasticity of demand for a specific brand of the good.
• B)The absolute value of the elasticity of demand ranges from zero to one.
• C)Demand is more elastic in the long run than it is in the short run.
• D)Demand is more elastic the smaller the percentage of the consumer's budget the item takes up.

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Definitions:

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, typically showing improvement in performance on simple or well-practiced tasks.

Stationary Bike

A device for indoor cycling that stays in one place, often used for exercise or training purposes.

Cyclist

An individual who rides a bicycle, whether for transportation, recreation, sport, or fitness.

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, typically better on simple or well-practiced tasks and worse on complex or new ones.