If the Absolute Value of the Price Elasticity of Demand

question 45

Multiple Choice

If the absolute value of the price elasticity of demand for good X is greater than 1, then:

• A) X is a complementary good.
• B) X is a substitute good.
• C) X is an superior good
• D) demand for X is said to be inelastic.
• E) demand for X is said to be elastic.

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Definitions:

Productivity

The measure of efficiency in converting inputs into outputs, often assessed in terms of the amount produced per unit of labor or resources.