For Any Given Price, the More Elastic Is the Demand

question 101

True/False

For any given price, the more elastic is the demand for a good, the greater will be the consumer surplus.

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Definitions:

Consumer Surplus

The benefit gained by consumers because they are able to purchase a product for a price less than the maximum price they would be willing to pay.

Tariff

A tax levied on imports.

Domestic Price

The price of goods or services within a country's borders, as opposed to international or global prices.

Consumer Surplus

The difference between the total amount that consumers are willing to pay and the total amount they actually pay for a good or service.