An elastic demand indicates that
A) quantity demanded does not vary with changes in the price.
B) relatively small changes in price lead to relatively large changes in quantity demanded.
C) relatively large changes in price are required to obtain a relatively small change in quantity demanded.
D) relatively large changes in quantity demanded lead to relatively large changes in price.
Answer: B
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Which group believes that business cycles are unreal?
a. external cycle theorists b. internal cycle theorists c. real business cycle theorists d. housing cycle theorists e. innovation cycle theorists
In the simple Keynesian model, a rightward shift in the aggregate demand curve __________ result in a change in the price level when the economy is in the horizontal segment of the AS curve and ___________ result in a change in the price level if the economy is in the vertical segment of the AS curve
A) will not; will B) will not; will not C) will; will not D) will; will
A decrease in the interest rate could have been caused by the money-demand curve shifting
a) leftward because the price level fall. b) leftward because the price level rose. c) rightward because the price level fell. d) rightward because the price level rose.
As opposed to corporate strategy, business strategy is focused on
A. how to compete with other firms in the industry. B. the type of industry to produce in. C. the type of production technique to use. D. increasing the elasticity of consumer demand.