Asked by Nia’s World on Mar 10, 2024

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When the elasticity coefficient for resource demand is less than one, resource demand is

A) inelastic.
B) elastic.
C) unit-elastic.
D) infinitely elastic.

Elasticity Coefficient

A numerical measure of the responsiveness of quantity demanded or supplied to one of its determinants, such as price or income.

Resource Demand

The requirement for resources or inputs necessary for production in response to market needs.

Infinitely Elastic

A situation in which the quantity demanded or supplied changes by an unlimited amount in response to any change in prices.

  • Acquire knowledge on the elasticity of demand for labor in relation to wage fluctuations.
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Verified Answer

CA
Christiane Ayesse

Mar 10, 2024

Final Answer :
A
Explanation :
When the elasticity coefficient for resource demand is less than one, it indicates that the percentage change in quantity demanded is less than the percentage change in price, which is the definition of inelastic demand.