Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market.
-If a product has an elastic demand, it means that:
A)consumers are relatively sensitive to a change in the price of the product.
B)consumers are relatively insensitive to a change in the quantity demanded of the product.
C)consumers are relatively insensitive to a change in the price of the product.
D)producers are relatively insensitive to a change in the price of the product.
E)producers are relatively sensitive to a change in the quantity demanded of the product.

Question

​Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market. 
-If a product has an elastic demand, it means that:
A)consumers are relatively sensitive to a change in the price of the product. 
B)consumers are relatively insensitive to a change in the quantity demanded of the product. 
C)consumers are relatively insensitive to a change in the price of the product. 
D)producers are relatively insensitive to a change in the price of the product. 
E)producers are relatively sensitive to a change in the quantity demanded of the product.

Quizplus · Accepted Answer

The Answer is A

​Figure 53

Figure 53