When the price of a product is increased 15 percent, the quantity demanded decreases 10 percent. We can therefore conclude that the demand for this product is:
A. Elastic
B. Inelastic
C. Cross-elastic
D. Unitary elastic
B. Inelastic
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A price index:
A. measures how much the cost of a market basket has risen or fallen relative to the cost in a base time period. B. summarizes the changes in the cost of living for only rural consumers. C. allows us to see clearly the changes in the cost of a market basket daily. D. is generally only used with consumer goods and services
Economic growth is best defined as an increase in:
What will be an ideal response?
From 1978 to 2003, China grew on average ________ percent per year, a rate faster than any other country in the world.
A. 4 B. 9 C. 25 D. 75
A decrease in consumer confidence can put your job at risk if
A) aggregate expenditures rise. B) aggregate expenditures fall. C) consumers expect firms to increase investment in the future. D) consumers expect their incomes to rise in the future.