The Demand Is More Price-Elastic

question 52

Multiple Choice

The demand is more price-elastic

• A) In the long run.
• B) If the product is a necessity.
• C) If the product is a small part of the consumer's budget.
• D) If the product has very few substitutes.

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Definitions:

Function

In mathematics, a relation or expression involving one or more variables, where each input value yields one and only one output value.

Production Function

A mathematical model that describes the relationship between the quantity of output produced and the quantities of inputs used in production.

Returns To Scale

An economic concept describing how the output changes in response to a proportional change in all input factors.

Marginal Product

The additional output that is produced by using one more unit of a particular input, holding all other inputs constant.