Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market.
-The less responsive consumers are to a change in the price of a product, _____.
A)the more price-elastic is the supply curve
B)the more income-inelastic is the demand curve
C)the more price-inelastic is the demand curve
D)the more income-elastic is the supply curve
E)the more price-elastic is the demand curve

Question

​Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market. 
-The less responsive consumers are to a change in the price of a product, _____.
A)the more price-elastic is the supply curve 
B)the more income-inelastic is the demand curve 
C)the more price-inelastic is the demand curve 
D)the more income-elastic is the supply curve 
E)the more price-elastic is the demand curve

Quizplus · Accepted Answer

When consumers are less responsive to a change in price, it indicates that the quantity demanded would not change significantly even if there is a change in price. This means that the demand curve is less sensitive, or in other words, more price inelastic.

​Figure 53

Figure 53