The Statement Which Is Correct About the Price Elasticity of Demand

question 138

Multiple Choice

The statement which is correct about the price elasticity of demand is:

• A) The elasticity of demand for a good in general is equal to the elasticity of demand for a specific brand of the good.
• B) The absolute value of the elasticity of demand ranges from zero to one.
• C) Demand is more elastic in the long run than it is in the short run.
• D) Demand is more elastic the smaller the percentage of the consumer's budget the item takes up.

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