Question : When the price elasticity of demand is greater than 1, the demand is:
Option 1: Inelastic
Option 2: Unitary elastic
Option 3: Perfectly elastic
Option 4: Elastic
Correct Answer: Elastic
Solution : The correct answer is (d) Elastic
When the price elasticity of demand is greater than 1, it indicates an elastic demand. Elastic demand means that the quantity demanded is highly responsive to changes in price. In other words, a small change in price leads to a relatively larger change in the quantity demanded. This indicates that consumers are sensitive to price changes, and a price increase would result in a significant decrease in quantity demanded, while a price decrease would result in a significant increase in quantity demanded.
Question : When the price elasticity of demand is less than 1, the demand is:
Question : If the price elasticity of demand is less than one, then the demand for the goods is said to be ______.
Option 1: perfectly inelastic
Option 2: inelastic
Option 3: perfectly elastic
Option 4: unitary elastic
Question : If the price elasticity of demand for a good is greater than 1, the demand is:
Option 1: Elastic.
Option 2: Inelastic.
Option 3: Unit elastic.
Option 4: Perfectly inelastic.
Question : If the price elasticity of demand for a good is less than 1, the demand is:
Option 4: Perfectly elastic.
Question : Perfectly inelastic demand occurs when the price elasticity of demand is:
Option 1: 0
Option 2: 1
Option 3: Greater than 1
Option 4: Undefined
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