For which good would consumers be the most responsive to a change in price if good A has an elasticity of 0.05, good B has an elasticity of 0.8, good C has an elasticity of 1.8, and good D has an elasticity of 47?
A) good A
B) good B
C) good C
D) good D

Question

Quizplus · Accepted Answer

Consumers would be most responsive to a change in price for the good with the highest elasticity, which is good D with an elasticity of 47. This indicates a very high sensitivity to price changes.

For Which Good Would Consumers Be the Most Responsive to a Change