Is inelastic less than 1?
Understand the Problem
The question is asking about the concept of inelasticity in economics, specifically whether the elasticity of demand or supply is less than 1, which indicates that a change in price leads to a relatively smaller change in quantity demanded or supplied.
Answer
Inelastic demand has an absolute value of elasticity less than 1.
The final answer is that inelastic demand has an absolute value of elasticity less than 1.
Answer for screen readers
The final answer is that inelastic demand has an absolute value of elasticity less than 1.
More Information
Inelastic demand means that consumers are less responsive to price changes; typically, essentials like utilities and basic groceries exhibit inelastic demand.
Tips
Students often confuse inelastic demand with unit elastic demand, which has an elasticity equal to 1, indicating proportional responsiveness to price changes.
Sources
- Is inelastic less than 1? - Quora - quora.com
- Price Elasticity of Demand: Meaning, Types, and Factors That Impact It - Investopedia - investopedia.com
- 6.1: Price Elasticity of Demand - Social Sci LibreTexts - socialsci.libretexts.org
- Categories of Elasticity | Macroeconomics - courses.lumenlearning.com
