35
The elasticity of demand of durable goods is
- ALess than unity
- BGreater than unity
- CEqual to unity
- DZero
Correct answer: B
Discussion 1
Log in or create a free account to reply and vote.
0
CCommunity
Greater than unity
The elasticity of demand of durable goods is greater than unity. Price elasticity of demand for durable goods is generally more elastic in short run than in long run. That is, quantity demanded is more sensitive to price changes of such durable goods in short run and not so much in the long run.
The elasticity of demand of durable goods is greater than unity. Price elasticity of demand for durable goods is generally more elastic in short run than in long run. That is, quantity demanded is more sensitive to price changes of such durable goods in short run and not so much in the long run.