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An increase in a good’s price reduces the total amount consumers spend on the good if the _________ elasticity of demand is _________ than one. a. income; less b. income; greater c. price; less d. price; greater
Chapter 5, Problem 2(choose chapter or problem)
An increase in a good’s price reduces the total amount consumers spend on the good if the _________ elasticity of demand is _________ than one.
a. income; less
b. income; greater
c. price; less
d. price; greater
Questions & Answers
QUESTION:
An increase in a good’s price reduces the total amount consumers spend on the good if the _________ elasticity of demand is _________ than one.
a. income; less
b. income; greater
c. price; less
d. price; greater
ANSWER:Step 1 of 2
Price elasticity of demand: The price elasticity of demand shows the responsiveness of change in the quantity due to changes in the price of the goods and services at a given period. The three types of price elasticity are elastic demand, inelastic demand, and unitary elastic demand.