A Demand Is Said to Be Inelastic When The

question 145

Multiple Choice

A demand is said to be inelastic when the:

• A) demand curve and the supply curve do not intersect.
• B) total cost and total revenue are equal at all levels of demand.
• C) elasticity of demand is less than 1.
• D) elasticity of demand is greater than 1.

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Definitions:

Base Year

A specific year against which economic growth or other economic variables are measured.

Nominal GDP

The market value of all final goods and services produced within a country in a given period, measured using current prices without adjustment for inflation.

Real GDP

An assessment of a country's economic production that is corrected for price fluctuations due to inflation or deflation, demonstrating the actual volume of goods and services created.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar GDP, reflecting the effects of inflation.