​Figure 53

Multiple Choice

​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.