-According to Table 2.1,which presents hypothetical data on price elasticity of demand,which good's demand is most sensitive to changes in price?
A) Car Repair
B) Bread
C) Electricity
D) Lamb

Question

-According to Table 2.1,which presents hypothetical data on price elasticity of demand,which good's demand is most sensitive to changes in price?
A) Car Repair 
B) Bread 
C) Electricity 
D) Lamb

Quizplus · Accepted Answer

Lamb, with the highest price elasticity of demand, indicates that its demand is most sensitive to changes in price. Elasticity greater than 1 suggests demand is elastic and significantly affected by price changes.