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 horizontal portion of the short-run aggregate supply curve in which there is excessive unemployment and unused capacity in the economy is
A) Say's law. B) the classical short-run aggregate supply curve. C) the Keynesian short-run aggregate supply curve. D) exists when prices are flexible.
Applying for a loan in five-person groups is an example of:
A. family and friends lending. B. party of five lending. C. group responsibility. D. trade-off.
Investment in both physical and human capital tends to enhance economic growth because it generally
a. increases consumption during the current period. b. makes it possible for individuals to produce more goods and services per hour worked. c. encourages firms to expand output by employing more low productivity workers. d. encourages workers to unionize and thereby fight for higher wages.
Refer to the accompanying figure. If Laura and Chris are the only two consumers in this market then at a price of $2.50 per pound, the market demand for hamburger is:
A. 3 pounds per week. B. 4.5 pounds per week. C. 1.5 pounds per week. D. 4 pounds per week.