Asked by Zintle Ngejane on Sep 23, 2024
Verified
As price increases,demand typically
A) becomes more elastic
B) becomes less elastic
C) does not change
D) elasticity does not change
Price Elasticity
Price elasticity measures how the quantity demanded of a good is affected by a change in its price, with high elasticity indicating sensitivity to price changes.
Demand
The quantity of a good or service that consumers are willing and able to purchase at a given price over a specified period.
Elastic
Describes a situation where the quantity demanded or supplied of a good is sensitive to changes in its price.
- Understand the relationship between price changes and demand elasticity.
Verified Answer
SY
Stephen Youngabout 3 hours ago
Final Answer :
B
Explanation :
When price increases, demand typically becomes less elastic, meaning consumers are less likely to purchase the good at a higher price. This is because there are likely substitutes available or the good may no longer be seen as necessary at the higher price point.
Learning Objectives
- Understand the relationship between price changes and demand elasticity.