If the absolute value of the price elasticity of demand for a good is. 75, the demand for that good is described asa. normal. b. elastic. c. inferior. d. inelastic.

Question

Business

Toni

9 October, 05:29

If the absolute value of the price elasticity of demand for a good is. 75, the demand for that good is described asa. normal. b. elastic. c. inferior. d. inelastic.

+5

Answers (1)

Know the Answer?

Cloe · Answer 1

Answer: Option (d) is correct.

Explanation:

Inelastic demand : The goods with the price elasticity of demand less than 1 are referred as a inelastic good.

When the percentage in quantity demanded is less than the percentage change in price, then the demand for that commodity is called as less elastic or inelastic.

It is generally represented by a steeper demand curve.