If Demand Is Inelastic, the Absolute Value of the Price

question 94

True/False

If demand is inelastic, the absolute value of the price elasticity coefficient is greater than one.

---

Definitions:

Minimum Wage

The lowest legal salary that workers can be paid by employers, set by government policy to ensure a basic standard of living for employees.

Protectionism

An economic policy aimed at restricting imports from other countries through tariffs and quotas to protect domestic industries.

World Trade Organization

An international organization designed to supervise and liberalize world trade, by providing a forum for trade negotiations and dispute resolutions.

Intellectual Property

Legally recognized exclusive rights to creations of the mind, such as inventions, literary and artistic works, designs, symbols, names, and images.