Suppose That the Value of the Long-Run Absolute Elasticity of Demand

question 144

Multiple Choice

Suppose that the value of the long-run absolute elasticity of demand for a good is one. Then, we know the short-run absolute price elasticity of demand will be

• A) inelastic.
• B) greater than one.
• C) elastic.
• D) less than one.

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Definitions:

Distribution

The way in which something is shared or exists over a particular area or among a particular group of people.

Standard Deviation

A measure of the dispersion of a set of data from its mean, indicating how spread out the data points are.

Variability

A measure of how spread out or dispersed the values in a dataset are.

Bimodal

Bimodal describes a distribution having two different modes, which are the most frequently occurring data points in a dataset.