Asked by Hloni Nkolanyane on Jun 03, 2024
Verified
When the elasticity coefficient for resource demand is greater than one,resource demand is:
A) inelastic.
B) elastic.
C) unit-elastic.
D) perfectly inelastic.
Elasticity Coefficient
A numerical measure of the responsiveness of the quantity demanded or supplied of a good or service to a change in one of its determinants, such as price.
Elastic
Describes a situation in economics where the demand for a product or service significantly changes in response to a price change.
- Learn about the elasticity concept related to resource demand and the techniques for its calculation.
Verified Answer
AK
amrit kahlonJun 09, 2024
Final Answer :
B
Explanation :
When the elasticity coefficient for resource demand is greater than one, resource demand is said to be elastic. This means that a small change in price will result in a larger change in the quantity of the resource demanded.
Learning Objectives
- Learn about the elasticity concept related to resource demand and the techniques for its calculation.