Several companies produce latex gloves that are used in a variety of different industries. If one of the glove manufacturers decreases its price by just a few percentage points, it will result in a significant increase in quantity demanded. The demand for latex gloves is:

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BlackTom AI · Accepted Answer

The scenario describes a price drop by a glove maker leading to a large rise in the quantity demanded, which aligns with the concept of elasticity in demand.
Option 1: 'entropic' does not pertain to demand responsiveness to price changes; entropic is a term often used in physics or information theory, not economics of demand sensitivity.
Option 2: 'inelastic' would mean quantity demanded barely changes with price changes, contradicting the described situation where a small price decrease causes a significant increase in quantity demanded.
Option 3: 'holistic' is a broad, integrative approach rather than a specific measure of how quantity responds to price, so it does not describe price–quantity sensitivity.
Option 4: 'elastic' directly characterizes a situation where quantity demanded responds substantially to price changes, matching the given description of a few percentage-point price cut causing a large increase in quantity demanded.
Option 5: 'synergistic' refers to interaction effects where combined factors produce greater effects than individually, which is not the standard term used to describe how quantity demanded responds to price changes in isolation.

Several companies produce latex gloves that are used in a variety of different industries. If one of the glove manufacturers decreases its price by just a few percentage points, it will result in a significant increase in quantity demanded. The demand for latex gloves is:

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Several companies produce latex gloves that are used in a variety of different industries. If one of the glove manufacturers decreases its price by just a few percentage points, it will result in a significant increase in quantity demanded. The demand for latex gloves is:

View Explanation

Log in for full answers

Similar Questions

If a company needs to raise the prices of some its products, it should choose to raise the prices of Blank ______ products because relatively fewer customers will stop buying the product as a result.

Calculate the price elasticity of demand for a change in price from $10.00 to $15.00. Price Quantity $10.00 20 $15.00 15

For substitutes, the cross-price elasticity is ___, the own price elasticity is ___.

If the price elasticity of demand coefficient is (-)1, total revenue will remain constant when price rises or price falls.

More Practical Tools for Students Powered by AI Study Helper

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For substitutes, the cross-price elasticity is _, the own price elasticity is _.