The Value of the Absolute Price Elasticity of Demand for Good

question 141

Multiple Choice

The value of the absolute price elasticity of demand for good A is 3. The absolute price elasticity for good B is 2. Which good's quantity demanded is less responsive to a change in price?

• A) Good A
• B) Good B
• C) They are equally responsive.
• D) Not enough information is given.

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Definitions:

Employment

A formal relationship between an employer and an employee in which work is performed in exchange for compensation.

Restrictive Covenants

Clauses in a contract that impose restrictions on one or more parties' actions, commonly used in employment and real estate agreements.

Anton Piller Order

A court order that permits the plaintiff to search premises and seize evidence without prior warning, to prevent the destruction of relevant documents or items.

Workers' Compensation

A form of insurance providing wage replacement and medical benefits to employees injured in the course of employment.