What is a characteristic associated with the price elasticity of demand?
A) The price elasticity of demand is unrelated to the competitive conditions in a country.
B) Demand is said to be inelastic when a small change in price produces a large change in demand.
C) Demand is said to be elastic when a large change in price produces a small change in demand.
D) Price elasticity tends to be greater in countries with low income levels.
E) The elasticity of demand is inversely proportional to the number of competitors offering a particular product.

Question

Quizplus · Accepted Answer

Price elasticity tends to be greater in countries with low income levels because consumers are more sensitive to price changes when they have less disposable income.

What Is a Characteristic Associated with the Price Elasticity of Demand