What Does the Following Statement Imply About Price Elasticity of Demand

question 57

Multiple Choice

What does the following statement imply about price elasticity of demand? "An unexpected spike in world oil prices leads to dramatic increase in revenue for the world's oil producers."

• A)short-run demand for oil is inelastic
• B)short-run demand for oil is elastic
• C)elasticity of demand for oil is equal to one
• D)elasticity of demand for oil is constant
• E)elasticity of demand for oil is equal to zero

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