Demand is inelastic if the price elasticity of demand is greater than 1.
Group of answer choices
True
False
Ans) False
The given statement is false. Demand is inelastic when the price elasticity of demand is less than 1
Demand is inelastic if the price elasticity of demand is greater than 1. Group of answer...
1. Suppose the price elasticity of demand for farm products is inelastic and the federal government wants to follow a policy of increasing income for farmers. To accomplish this goal, the government will promote the programs that.........(increase or decrease) the price of farm products, knowing that the percentage change in price will be......…...(exactly the same as, Greater than, or smaller than) the percentage........(increase or Decrease) in quantity. 2. Suppose the price elasticity of demand for used cars is estimated to...
elasticity of demand measures the responsiveness of demand quantity changes compared with changes in price. True False elastic demand would be (greater than or less than or equal to) 1 unit elastic would be (greater than or less than or equal to) 1 inelastic demand would be (greater than or less than or equal to) 1 When demand for a good A increase the demand for a "complementary" good B would _________ The demand for an inferior good B would...
Which of the following statements is true? Group of answer choices b and d. Total revenue is maximized when elasticity is one. Goods are said to be price inelastic when the elasticity is greater than two. Demand for milk is more elastic than demand for football tickets. Demand for 5-cent candy is more elastic than demand for sweaters.
Price elasticity of demand for a product is likely to be greater the smaller the proportion of one`s incomes is spent on the good the greater the amount of time passes the fewer the number of substitutes if the product is a necessity rather than a luxury The demands for such products as salt and electricity tend to be: perfectly price elastic. relatively price inelastic. relatively price elastic. of unit price elasticity.
Suppose that the price elasticity of demand of a good is -3. Its demand is _________ and the percentage change in its quantity demanded is ________ than the percentage change in its price. A. Elastic: Smaller B. Elastic: Greater C. Inelastic: Smaller D. Inelastic: Greater Which of the following is not a determinant of the price elasticity of demand? A. Availability of substitutes B. Degree of necessity C. Cost relative to income D. Availability of inputs With a(n) ______ demand,...
22. The price elasticity of demand measures the responsiveness of the change in the: A) quantity demanded to a change in the price. B) price to a change in the quantity demanded. C) lope re enterprise D) slope of the demand curve to a change in the quantity demanded. 23. The price of gasoline rises 5% and the quantity of gasoline purchased falls 1%. price elasticity of demand is equal to _______ and demand is described as _______ A) 0.2; inelastic B) 5; inelastic C) 0.2; elastic 24. For a...
When large changes in price lead to no changes in quantity demanded, demand is perfectlyGroup of answer choicesinelastic, and the demand curve will be vertical.inelastic, and the demand curve will be horizontal.elastic, and the demand curve will be vertical.elastic, and the demand curve will be horizontal.
If the demand for a product is price inelastic: an increase in price will increase total revenue. the price elasticity coefficient will be greater than one. an increase in price will decrease total revenue. a decrease in price will result in a decrease in demand.
When the value of income elasticity of demand is greater than zero, the good is called normal good. Select one: a. False b. True
1)Explain what it means when demand is inelastic? 2) If demand is elastic, total revenue will increase when the price decreases? True or False? 3) The price elasticity of supply will be a smaller number when it is relatively easy for sellers to increase their supply. ( True or False)? 4) Demand is more elastic when the absolute value of the price elasticity of demand is larger. ( True or False)? 5) If the quantity demanded of one good increases...