Price responsiveness or elasticity is an economic concept that generally aims to describe and estimate: a. By how much price changes when firms enter an industry. b. By how much an economically relevant variable (like quantity demanded, quantity supplied, quantity of labor supplied or quantity of labor demanded) changes as price, income, wages or taxes change. c. By how much inflation changes over time. d. By how much price changes when a product goes on sale.

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Q: fecting the demand for a specific good?   a.     Consumer income. b.     Pop

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Q: T he price of a good rises from $16 to $24, and the quantity supplied rises from 90 to 110 units.…

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Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.