Q75
Identify the coefficient of price-elasticity of demand when the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price
A.
Equal to one
B.
Greater than one
C.
Small than one
AnswerD.
Zero
Answer: Option C
Solution
Answer: Option C
Solution:
The coefficient of price-elasticity of demand is smaller than one when the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price.