Question

Identify the correctly matched pair from the items in Column A by matching them to the items in Column B:

Column A		Column B
1	Relatively Inelastic Demand	(a)	ed > 1
2	Relatively Elastic Demand	(b)	ed < 1
3	Perfectly Inelastic Demand	(c)	ed = 0
4	Perfectly Elastic Demand	(d)	ed = 1

Options

• 1 - (a)

• 2 - (b)

• 3 - (c)

• 4 - (d)

Answer 1

3 - (c)

Explanation:

1. Demand that is Relatively Inelastic - ed 1 
2. Demand That Is Relatively Elastic ed > 1
3. Demand that is perfectly inelastic - ed = 0
4. Demand- ed = infinite for Perfectly Elastic Demand