Asked by Samantha Stoner on May 10, 2024
Verified
When the elasticity coefficient for resource demand is less than one,resource demand is:
A) inelastic.
B) elastic.
C) unit-elastic.
D) infinitely elastic.
Elasticity Coefficient
A measure of how much the quantity demanded or supplied of a good responds to a change in price, income, or other variables.
Inelastic
A situation where the demand or supply of a good or service is not significantly affected by changes in price.
- Familiarize oneself with the notion of demand elasticity for resources and the approach to calculate it.
Verified Answer
WM
Willie McMillanMay 16, 2024
Final Answer :
A
Explanation :
When the elasticity coefficient for resource demand is less than one, it means that the percentage change in quantity demanded is less than the percentage change in price. This indicates that the demand for the resource is relatively unresponsive to changes in price, making it inelastic.
Learning Objectives
- Familiarize oneself with the notion of demand elasticity for resources and the approach to calculate it.