Identify which among the following denotes the coefficient of price-elasticity of demand when the percentage increase in the quantity of a good demanded is smaller than the percentage fall in its price?

Equal to one.

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Greater than one.

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Less than one.

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Zero.

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Solution

The correct option is D Less than one.
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.
Hence, the correct option is C.

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Similar questions

Q. Identify the coefficient of price-elasticity of demand when the percentage increase in the quantity of a good demanded is smaller than the percentage fall in its price _________.

Q. If the percentage increase in the quantity of a commodity demanded is smaller than the percentage fall in its price, the coefficient of price elasticity of demand is _______________.

Q. According to percentage method or arithmetic method of elasticity of demand, If percentage change in quantity demanded is less than percentage change in price, the elasticity is said to be ________________.

What is the situation implies in the case where the demand is greater than unitary elastic when percentage change in quantity demanded in response to change in price of the commodity?

Q. When the price of

X

doubles, its quantity demanded falls by

60

per cent. Calculate its price elasticity of demand. What should be the percentage change in price so that its quantity demanded doubles?

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Identify which among the following denotes the coefficient of price-elasticity of demand when the percentage increase in the quantity of a good demanded is smaller than the percentage fall in its price?

The correct option is D Less than one.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.Hence, the correct option is C.

The correct option is D Less than one.
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.
Hence, the correct option is C.