If the Price Elasticity of Demand for a Good Is

question 25

Multiple Choice

If the price elasticity of demand for a good is greater than one, then the demand for that good is:

• A)elastic.
• B)inelastic.
• C)unit elastic.
• D)perfectly elastic.

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Definitions:

Measuring Device

An instrument used to ascertain the size, quantity, or degree of something.

Predictability

The degree to which a future event or outcome can be forecasted based on present or past data.

Reliability

The degree to which the result of a measurement, calculation, or specification can be depended on to be accurate.

Measurement

The process of obtaining a quantitative description of an attribute or phenomenon, often by comparing it to a standard unit.