question archive If the absolute value of the elasticity of demand is greater than 1, demand is _____
If the absolute value of the elasticity of demand is greater than 1, demand is _____
Subject:EconomicsPrice:2.88 Bought3
If the absolute value of the elasticity of demand is greater than 1, demand is _____. If the elasticity of demand equals zero, demand is _____.
a. elastic, perfectly inelastic
b. elastic, perfectly elastic
c. inelastic, perfectly inelastic
d. inelastic, perfectly elastic
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- If the absolute value of the elasticity of demand is greater than 1, demand is elastic. If the elasticity of demand equals zero, demand is perfectly inelastic.
When price elasticity of demand is zero, then demand is perfectly inelastic - that quantity demanded is the same, regardless of what the price is. The larger the price elasticity is the absolute value, the more elastic demand is. When the price elasticity of demand is greater than one, demand is elastic.
