Answer to Question #218111 in Economics for Paballo

Question

If the price elasticity of beef is greater than the price elasticity of coffee, it means that households are

A. more responsive or sensitive to a change in the demand for beef than to a change in the demand for coffee.

B. more responsive or sensitive to a change in the price of coffee than to a change in the price of beef.

C. more responsive or sensitive to a change in the demand for coffee than to a change in the demand for beef.

D. more responsive or sensitive to a change in the price of beef than to a change in the price of coffee.

Answer 1

If the price elasticity of beef is greater than the price elasticity of coffee, it means that households are more responsive or sensitive to a change in the price of beef than to a change in the price of coffee.

So, the correct answer is D.