The Price Elasticity of Demand Refers to the Principle That

question 50

True/False

The price elasticity of demand refers to the principle that if the price of a good or a service is reduced th quantity demanded increases.

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Definitions:

Downward-Sloping Demand Curve

A graphical representation showing the inverse relationship between the price of an item and the quantity demanded.

Price-Elasticity Coefficient

A measure indicating the responsiveness of the quantity demanded or supplied of a good to a change in its price.

Equal To Zero

A state or condition where a value, quantity, or balance is zero.

Price-Elasticity Coefficient

A measure showing the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price.