If Demand Is Elastic and the Price of a Product

question 334

Multiple Choice

If demand is elastic and the price of a product decreases by 100 percent, then

• A) the change in quantity demanded is less than 100 percent.
• B) the change in quantity demanded is equal to 100 percent.
• C) the change in quantity demanded is greater than 100 percent.
• D) the decrease in quantity demanded is greater than 0 percent.

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Definitions:

Agriculture Sector

The part of the economy concerned with the production, processing, and distribution of food, fiber, and products from plants and animals.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale.

Labour-intensive Jobs

Occupations or industries that require a high amount of manual work relative to capital investment, often characterized by high employment levels.

Collective Bargaining Process

A negotiation process between employers and a group of employees aimed at reaching agreements to regulate working salaries, working conditions, and other aspects of workers' compensation and rights.