Elasticity answer key with notes.pdf - Indicate the answer choice that best completes the statement or answers the question 1 The price elasticity of

Elasticity answer key with notes.pdf - Indicate the answer...

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‘, a. 6 > 1\tLJ\C ] t?L VY’, ., Indicate the answer choice that best completes the statement or answers the question. 1 The price elasticity of demand measures E A Cbuyers’ responsiveness to a change in the price of a good. V .)the extent to which demand increases as additional buyers enter the market. r how much more of a good consumers will demand when incomes rise. -> -w )‘cthe movement along a supply curve when there is a change in demand. ...> , -j’v 2. Demand is said to be price elastic if > ( thee of the good responds substantially to changes in demand. )demand sbis substantially when income or the expected future price of the good changes. -, r’ h ‘ycbuyers do noiond much to changes in the price of the good. rvfl V’ yj j,..( (d. buyers respond substantially to changes in the price of the good. \ QO 3. The smaller the price elasticity of demand, the •—... t Ikl) ‘c: more likely the product is a lu)i%i. smaller the responsiveness of quantity demanded to a chpiprice. more suies the product has. k g)M’the responsiveness of quantity demanded to a change in price.
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