When the Absolute Price Elasticity of Demand Is Less Than

question 113

Multiple Choice

When the absolute price elasticity of demand is less than 1, demand is

• A) elastic.
• B) unit-elastic.
• C) inelastic.
• D) undetermined without more information.

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Definitions:

Standard Normal Distribution

A normal distribution with a mean of zero and a standard deviation of one, used as a basis for comparing other normal distributions.

Less Than

A mathematical relation indicating that one quantity is smaller than another.

Z-scores

A statistical measurement of how many standard deviations an element is from the mean of its population.

Shaded Area

The portion of a graph or diagram overlaid with a color or pattern to denote a particular section or significance.