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Estimates of the Short- Run Price Elasticity of Demand for Road

Question 29

Multiple Choice

Estimates of the short- run price elasticity of demand for road fuel in industrialised countries range between - 0.15 to - 0.28. Which of the following is correct?


A) The price elasticity of demand is perfectly inelastic.
B) The price elasticity of demand is perfectly elastic.
C) The price elasticity of demand is unitarily elastic.
D) The price elasticity of demand is relatively elastic.
E) The price elasticity of demand is relatively inelastic.

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