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.

Accepted Answer

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.

Question #218111

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