The value of the absolute price elasticity of demand for good X is 3. The absolute price elasticity for good Y is 2. Which good's quantity demanded is less responsive to a change in price?
A) Good X
B) Good Y
C) They are equally responsive.
D) Not enough information is given.
Ans: B) Good Y
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In 1768-72, the top ten commodity exports of the thirteen colonies included all of the following except
a. tobacco b. bread and flour c. fish d. horses e. All of the above were among the top ten exports.
An indication that Insurance companies anticipate adverse selection is
a. they do not require a deductible b. they classify clients into different risk types according to their claim history c. they do not classify clients into different risk types according to pre-existing conditions d. they do not require a co-payment
Since people's incomes are limited and their abilities to borrow differ they face _____ constraints
a. psychological b. financial c. societal d. contractual
In a market system, the most dangerous types of bankruptcies involve
a. industrial monopolies. b. multinational firms. c. employment agencies. d. financial institutions.