Consumers who are more sensitive to changes in price suffer a greater loss of consumer surplus from any given price increase
Indicate whether the statement is true or false
False . Consumers who are more sensitive to the price increase will reduce their purchase of the good by a greater extent than those who are not price sensitive. As a result, they incur a smaller loss of consumer surplus.
You might also like to view...
The Immigration Reform and Control Act of 1986:
A. Increased fines on employers who hire illegal immigrants B. Boosted funding for fencing, monitoring, and policing the U.S.-Mexican border C. Created a guest worker program D. Created an amnesty program for illegal immigrants
Refer to the above diagram. When AD1 shifts to AD2, then at P1Q3 output demanded will:
A. equal output supplied. B. be less than output supplied. C. exceed output supplied. D. be at stable full-employment GDP.
The purchasing power parity (PPP) consists of a method of comparing the:
A. life expectancy rates in different countries. B. labor force in different countries. C. income in different countries by looking at the domestic purchasing power of money. D. daily calories supplied in different countries.
Refer to the information provided in Figure 15.5 below to answer the question(s) that follow. 
Figure 15.5 Refer to Figure 15.5. If the Custom Sweater Shop is monopolistically competitive, what is the minimum level of fixed cost that would lead to the firm continuing to operate in the short run?
A. $400 B. $4,600 C. $5,000 D. The firm would continue to operate regardless of the level of fixed costs.