Demand Is Inelastic Only If the Price Elasticity of Demand

question 129

Multiple Choice

Demand is inelastic only if the price elasticity of demand has an absolute value _____

• A)of 1.
• B)greater than 1.
• C)greater than 0 but less than 1.
• D)less than 0.
• E)greater than 5.

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Definitions:

Enforcement

The act of compelling compliance with a law, rule, agreement, or order through the application of penalties for violations.

Conforming Goods

Products that meet the specifications and requirements set forth in a contract of sale.

Obligated

Being legally or morally bound to do something.

Perfect Tender Rule

A legal principle requiring sellers to deliver goods that exactly meet the terms and specifications of the contract.