If the Absolute Price Elasticity of Demand for a Product

question 42

Multiple Choice

If the absolute price elasticity of demand for a product is less than 1, then

• A) consumers are relatively sensitive to price changes.
• B) consumers are relatively insensitive to price changes.
• C) there is a positive relationship between price changes and the quality of the product.
• D) producers are relatively insensitive to price changes.

---

Definitions:

Sellers

Entities or people presenting items or services to be sold within the market.

Rent Control

Rent control is a government policy or regulation that sets a limit on how much landlords can charge for leasing apartments or houses, aimed at making housing more affordable.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price within a specific time period.

Price Ceiling

A legal maximum on the price at which a particular good can be sold.