At Higher Prices,the Price Elasticity of Demand Is Likely to Be

question 137

Multiple Choice

At higher prices,the price elasticity of demand is likely to be ________,whereas it is likely to be ________ at lower prices.

• A) perfectly elastic; perfectly inelastic
• B) elastic; inelastic
• C) inelastic; elastic
• D) perfectly inelastic; perfectly elastic
• E) unitary elastic; elastic

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Definitions:

Output

The amount of goods or services produced by a company, industry, or economic system.

Industry

A group of companies or businesses that produce similar goods or services and compete within the same market.

Correction

A term often used in finance and economics, indicating a short-term decline in the price of assets or the broader market to adjust for overvaluation.

Emissions Abatement

The process of reducing emissions of pollutants into the environment, typically achieved through policies, technologies, or practices that decrease the emission of harmful gases.