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Agriculture Economics QUESTION #11890
Question 1
If the price elasticity of demand is calculated as $E_d = -2.5$, demand for that good is described as:
  • Perfectly inelastic
  • Inelastic
  • Elastic✔️
  • Unit elastic
Correct Answer Explanation
An elasticity coefficient with $|E_d| > 1$ (here, $2.5$) indicates elastic demand.