Asked by Sanghishetty Swathi on Jul 06, 2024
Verified
Assume that demand is elastic.Of the elasticities shown here,which is the lowest that would still be considered elastic?
A) 10.0
B) 1.01
C) 1.00
D) 0.01
Demand
The total quantity of goods or services that consumers are willing and able to purchase at various prices during a specific time period.
Elastic
Describes a situation where the demand for a good or service significantly changes in response to changes in price.
Elasticities
Measures of how much the quantity demanded or supplied of a good responds to changes in price, income, or other factors.
- Specify the variances among elastic, inelastic, and unit-elastic demand.
Verified Answer
EJ
Esther JosephJul 10, 2024
Final Answer :
B
Explanation :
An elasticity of 1.01 or greater is typically considered elastic, so the lowest elasticity among the options provided that would still be considered elastic is option B, with an elasticity of 1.01. Options A, C, and D would all be considered inelastic.
Learning Objectives
- Specify the variances among elastic, inelastic, and unit-elastic demand.