Which of the following is TRUE regarding the concept of elasticity in pricing strategy?
A)If the elasticity of demand is greater than 1.0, that demand is said to be elastic
B)If the elasticity of supply is greater than 1.0, that demand is said to be inelastic
C)If the elasticity of demand is less than 1.0, that demand is said to be elastic
D)If the elasticity of supply equals 1.0, that demand is said to be elastic

Question

Which of the following is TRUE regarding the concept of elasticity in pricing strategy?​
A)​If the elasticity of demand is greater than 1.0, that demand is said to be elastic
B)​If the elasticity of supply is greater than 1.0, that demand is said to be inelastic
C)​If the elasticity of demand is less than 1.0, that demand is said to be elastic
D)​If the elasticity of supply equals 1.0, that demand is said to be elastic

Quizplus · Accepted Answer

If the elasticity of demand is greater than 1.0, that demand is said to be elastic, meaning that a change in price will cause a greater change in quantity demanded.

Which of the Following Is TRUE Regarding the Concept of Elasticity