If a Good Has a Price Elasticity of Demand Coefficient

question 122

Multiple Choice

If a good has a price elasticity of demand coefficient less than one, then:

• A) this good has an elastic demand.
• B) this good has an inelastic demand.
• C) a 10 percent increase in the price will result in a greater than 10 percent decrease in the quantity demanded.
• D) the demand curve will be vertical.

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