If the Absolute Value of the Price Elasticity of Demand

question 258

Multiple Choice

If the absolute value of the price elasticity of demand for a product is greater than 1, then

• A) quantity demanded is not very sensitive to price changes.
• B) demand is elastic.
• C) demand is unit-elastic.
• D) demand is inelastic.

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Definitions:

Asexually

Reproducing without the involvement of sex cells, resulting in offspring genetically identical to the parent.

Gemmae

Small asexual reproductive structures produced by some plants, such as mosses and liverworts, which can develop into new individuals.

Liverworts

Simple, non-vascular plants belonging to the division Marchantiophyta, found in moist, shady environments and playing roles in ecosystems as pioneer species.

Sago Palms

Tropical plants of the genus Cycas, known for their large compound leaves and the production of sago, a starch extracted from their trunks.