Assuming elasticity of demand is reported as an absolute value, a price elasticity of demand of 0.4 indicates an:
A. elastic demand, meaning the percentage change in quantity demanded will be greater than the percentage change in price.
B. inelastic demand, meaning the percentage change in quantity demanded will be greater than the percentage change in price.
C. elastic demand, meaning the percentage change in quantity demanded will be less than the percentage change in price.
D. inelastic demand, meaning the percentage change in quantity demanded will be less than the percentage change in price.
D. inelastic demand, meaning the percentage change in quantity demanded will be less than the percentage change in price.
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In the short run, the profit-maximizing firm will ______
A. break even if marginal revenue equals marginal cost B. make an economic profit if marginal cost is less than average total cost C. incur an economic loss if average fixed cost exceeds marginal revenue D. incur an economic loss if average total cost exceeds marginal revenue
Use the above figure. The profit-maximizing price will be
A) P1. B) P2. C) P3. D) P4.