Which of the Following Statements About Price Elasticity of Demand

question 31

Multiple Choice

Which of the following statements about price elasticity of demand is true?

• A)It is greater than one if the percentage increase in the commodity's price is greater than the percentage decline in quantity demanded.
• B)It is very small when good substitutes are readily available for the commodity.
• C)It usually increases over time.
• D)It is a positive number because price and quantity demanded move in the same direction.
• E)It is higher for an entire group of related products than it is for a particular product in that group.

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