Assuming price elasticity of demand is reported as an absolute value, a price elasticity of demand of 1.2 indicates an:
A. elastic demand, meaning the percentage change in quantity demanded will be greater than the percentage change in price.
B. inelastic demand, meaning the percentage change in quantity demanded will be greater than the percentage change in price.
C. elastic demand, meaning the percentage change in quantity demanded will be less than the percentage change in price.
D. inelastic demand, meaning the percentage change in quantity demanded will be less than the percentage change in price.
A. elastic demand, meaning the percentage change in quantity demanded will be greater than the percentage change in price.
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What will be an ideal response?
The primary objective of a for-profit firm is to ___________
a. maximize agency costs b. minimize average cost c. maximize total revenue d. set output where total revenue equals total cost e. maximize shareholder value
The price of a seller's product in perfect competition is determined by
A) the individual seller. B) a few of the sellers. C) market demand and market supply. D) the individual demander.
Refer to the graph shown. For which curve does the price elasticity of supply decrease as price increases?
A. A B. B C. C D. D