When the quantity demanded is very sensitive to changes in price,

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    (?Q/Q) > (?P/P) and demand is price elastic.
     (?Q/Q) > (?P/P) and demand is price inelastic.
     The price elasticity is greater than 1 in magnitude and demand is price elastic.
     Both 1 and 3.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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Both 1 and 3.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)

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