When the elasticity coefficient for resource demand is greater than one, resource demand is
A) inelastic.
B) elastic.
C) unit-elastic.
D) perfectly inelastic.

Question

Quizplus · Accepted Answer

When the elasticity coefficient for resource demand is greater than one, resource demand is elastic. This means that there is a significant change in the quantity demanded in response to a change in the price of the resource. In other words, a relatively small change in price will result in a larger change in the quantity demanded, indicating that the demand is responsive to price changes.

When the Elasticity Coefficient for Resource Demand Is Greater Than