Homework SourseIf the elasticity of demand for regular doctor office visits
If the elasticity of demand for regular doctor office visits is - 0.4. You can say that demand for this service is
elastic
inelastic
unitary elastic
perfectly elastic
perfectly inelastic
| a. | elastic | |
| b. | inelastic | |
| c. | unitary elastic | |
| d. | perfectly elastic | |
| e. | perfectly inelastic |
Solution
Absolute value of the elasticity of demand = 0.4, which is lower than 1. Demand is inelastic when absolute value of elasticity is less than 1.
Correct option (b).
