If the Price Elasticity of Demand Is Greater Than 1

question 205

Multiple Choice

If the price elasticity of demand is greater than 1, then consumer demand is

• A) unrelated to the elasticity of demand.
• B) inelastic.
• C) elastic.
• D) unitary elastic.

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Definitions:

Building

A fixed structure used for residential, commercial, or industrial purposes, considered a long-term physical asset in accounting.

Discount

A reduction applied to the normal selling price of goods or services, usually offered as an incentive to encourage purchase.

Common Stock

Equity ownership in a corporation, with voting rights and eligibility to receive dividends.

Cash

Currency available for use in transactions or deposits, represented by coins or banknotes.