If a one percent increase in the population leads to a five percent increase in the quantity sold,an economist would claim
A) the good is elastic with respect to population.
B) the good is inelastic with respect to population.
C) the good is a fad.
D) consumers are misinformed about the quality of the product.

Question

Quizplus · Accepted Answer

The one percent increase in population leading to a five percent increase in the quantity sold indicates a high responsiveness of quantity demanded to changes in population. This suggests that the good is elastic with respect to population.

If a One Percent Increase in the Population Leads to a Five