Demand is inelastic if
A) a large change in quantity demanded results in a small change in price.
B) the quantity demanded is very responsive to changes in price.
C) the price elasticity of demand is less than 1.
D) the price elasticity of demand is greater than 1.
C
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If the equilibrium price of good X is $4 and a price ceiling is imposed at $5, the result will be a(n):
a. depletion of inventories. b. shortage. c. surplus. d. equilibrium.
Positive externalities lead to under supply in a market
Indicate whether the statement is true or false
Which of the following is a valid difference between deflation and disinflation? a. Deflation is a fall in average price levels, but disinflation is a reduced rate of inflation
b. Disinflation is a fall in average price levels, but deflation is a reduced rate of inflation. c. Disinflation is a significant rise in average price levels, but deflation is a reduced rate of inflation. d. Disinflation is a fall in average price levels, but deflation is a significant rise in average price levels.
Both the monetarist view of the economy and the simple quantity theory of money hold that velocity is constant
Indicate whether the statement is true or false