alleryStart learning →According to the source, when is demand or supply classified as inelastic?
AWhen the elasticity is less than one
BWhen the elasticity is greater than one
CWhen the elasticity is exactly one
DWhen the elasticity is infinite
Answer & Solution
Correct answer: A. When the elasticity is less than one
1. Inelastic demand or supply describes low responsiveness of quantity to a price change.
2. Table 5.1 assigns this label whenever the calculated elasticity value is less than one.
3. A value greater than one is elastic, and exactly one is unitary, so neither matches inelastic.
4. Infinite elasticity is the separate extreme case of perfect elasticity, not ordinary inelastic demand.
_Source: OpenStax Principles of Microeconomics for AP Courses (CC BY 4.0), Ch 5 "Elasticity", section 5.1 | Price Elasticity of Demand and Price Elasticity of Supply_
Keep practising Elasticity
Browse all Elasticity questions for AP Microeconomics, or explore more Economics topics.
Related questions
According to the source, at least in the short run, how does the elasticity of savings witA 10 percent increase in the price of housing causes what change in the quantity of housinTable 5.2 in housing with a demand elasticity of 0.12, the lowest value in the table. How In the midpoint method, how is the percentage change in price calculated between two pointIn the midpoint method, how is the percentage change in quantity calculated between two poA one percent change in price leads to an exactly proportional one percent change in quantAccording to the source, demand or supply is classified as elastic under which condition?