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Question
The coefficient of price elasticity of a good is 0.8, its demand will said to be ______.
Options
elastic
inelastic
perfectly elastic
perfectly inelastic
Solution
The coefficient of price elasticity of a good is 0.8, its demand will said to be inelastic.
Explanation:
If the coefficient of price elasticity of a good is 0.8, its demand is said to be inelastic. This means that the percentage change in quantity demanded is less than the percentage change in price.
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