A good with a price elasticity of demand equal to .75 is described as price-inelastic.Group startsTrue or FalseTrue, unselectedFalse, unselected
Question
A good with a price elasticity of demand equal to .75 is described as price-inelastic.Group startsTrue or FalseTrue, unselectedFalse, unselected
Solution
True. A good with a price elasticity of demand less than 1 (in absolute value) is considered price-inelastic. This means that the quantity demanded is not very responsive to changes in the price. In this case, a price elasticity of demand equal to .75 is indeed price-inelastic.
Similar Questions
If the absolute value of the price elasticity of demand for a good is .75, the demand for that good is described asMultiple Choicenormal.elastic.inferior.inelastic.
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