If the Demand for a Good Is Elastic, the Price

question 92

Multiple Choice

If the demand for a good is elastic, the price elasticity of demand is

• A) less than zero.
• B) between 0 and 1.
• C) greater than 1.
• D) equal to 1.

---

Definitions:

Residual Value

The estimated value of an asset at the end of its useful life, reflecting what it could be sold for or its salvage value.

Lessor

An entity or individual that leases or rents property or assets to a lessee.

Lessee

The entity that obtains the right to use an asset under a lease agreement from the lessor.

Uses the Asset

Refers to how an asset is employed within a business or investment strategy to generate returns or benefits.