If Price Elasticity of Demand Is Between 0 and 1

question 366

Multiple Choice

If price elasticity of demand is between 0 and 1, demand for that product is

• A) inelastic.
• B) elastic.
• C) monetary elastic.
• D) unitary elastic.

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Definitions:

Fixed Asset

A long-term tangible piece of property or equipment that a firm owns and uses in its operations to generate income, not expected to be consumed or converted into cash within a year.

Useful Life

The estimated period over which an asset is expected to be usable by an organization, affecting its depreciation calculation.

Present Value Factor

A multiplier used to determine the present value of a future amount of money or stream of cash flows given a specific discount rate.

Desired Rate of Return

The minimum percentage return an investor expects to achieve on an investment, influencing the choice of investment.