True or false? If the price elasticity of demand is equal to 0, then demand is unit elastic.
Question:
True or false? If the price elasticity of demand is equal to 0, then demand is unit elastic.
Price elasticity:
One can define the price elasticity of demand as the extent of change in quantity demanded of a commodity when there occurs a change in the own price of that commodity. Based on the values of price elasticity, the demand could be perfectly elastic, perfectly inelastic, elastic, inelastic or unit-elastic.
Answer and Explanation: 1
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View this answerThe statement is false.
The price elasticity of demand equal to zero suggests that changes in price do not have any effect on the quantity demanded....
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Cross Price Elasticity of Demand: Definition and Formula
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Chapter 2 / Lesson 12
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What is the price elasticity of demand formula? Understand its relevance with the demand of a good, as well as how to calculate price elasticity via examples.
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