Price elasticity of demand If the price elasticity of demand for a product measures 0.45, then: Select the correct answer A this good has many available substitutes. B) this good must be a non-essential good. C) this good is a high-priced good. D) a decrease in price will increase total revenue. E this good is demand price inelastic.
Price elasticity of demand If the price elasticity of demand for a product measures 0.45, then: Select the correct answer A this good has many available substitutes. B) this good must be a non-essential good. C) this good is a high-priced good. D) a decrease in price will increase total revenue. E this good is demand price inelastic.
Chapter20: Elasticity: Demand And Supply
Section: Chapter Questions
Problem 11E: The price elasticity of the demand for gasoline is -0.02. The price elasticity of demand for...
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Transcribed Image Text:Price elasticity of demand.
If the price elasticity of demand for a product measures 0.45, then:
Select the correct answer
(A) this good has many available substitutes.
B this good must be a non-essential good.
C this good is a high-priced good.
(D) a decrease in price will increase total revenue.
E this good is demand price inelastic.
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