Related to the Economics in Practice on page 280: The foreign visitors to the temples of Laos are typically much richer than the local Laotians. This tends to make the foreign visitors ________ buyers when it comes to ticket prices to enter the temples.
A) perfectly elastic
B) more elastic
C) less elastic
D) perfectly inelastic

Question

Quizplus · Accepted Answer

Since foreign visitors are typically much richer than the local Laotians, ticket prices to enter the temples are likely a smaller proportion of their income. Therefore, they are less sensitive to changes in price and their demand is less elastic. This means that the foreign visitors are less likely to adjust their purchases (i.e. visiting the temples) in response to changes in ticket prices.

Related to the Economics in Practice on Page 280: the Foreign