Author Question: Elasticity has which special meaning for economists? a. b and c. b. A ratio of percentage changes. ... (Read 51 times)

jace · **on:** Jun 30, 2018

Elasticity has which special meaning for economists?
a. b and c.
b. A ratio of percentage changes.
c. How easily prices adjust to market changes.
d. How price changes as quantities demanded change.
e. When consumers will no longer react to price changes.

Question 2

Sally is an average shopper, with average income. When she is in the store she buys a few items which cost more than 20, several items which cost between 5 and 20, and many items which cost less than 1 . The price elasticity of Sally's demand for these goods most likely ____.
a. increases as the price decreases
b. decreases as the price decreases
c. increases as the price increases
d. decreases as the price increases
e. remains constant over all price ranges