If the demand elasticity coefficient of cars is 0.5, it implies that the demand for
ECONOMICS
JAMB 2008
If the demand elasticity coefficient of cars is 0.5, it implies that the demand for petrol is
- A. elastic
- B. perfectliy inelastic
- C. inelastic
- D. perfect elastic
Correct Answer: C. inelastic
Explanation
If the demand elasticity coefficient is less than 1, that is (0.4, 0.5, etc) it means the demand is inelastic. This means that the change in price had little impact on the quantity demanded.
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *