If the Demand for a Good Is Elastic, the Price

question 408

Multiple Choice

If the demand for a good is elastic, the price elasticity of demand is

• A) greater than 1.
• B) equal to 1.
• C) between 0 and 1.
• D) less than zero.

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Definitions:

Homeopathy

A 200-year-old system of medicine based on the Law of Similars. This means that if a dose of a substance can cause a symptom, that same substance in minuscule amounts can cure the symptom.

Law of Similars

A principle in homeopathy suggesting that substances causing symptoms in healthy people can treat similar symptoms in sick people.

Symptom

A physical or mental feature that is regarded as indicating a condition of disease, particularly such a feature noticed by the patient.

Substance

Material with particular physical characteristics or chemical composition.