Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market.
-When the elasticity of demand for a particular good is between zero and -1, _____.
A)demand is elastic
B)demand is inelastic
C)demand is unit-elastic
D)the good is an inferior good
E)the good is a normal good

Question

​Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market. 
-When the elasticity of demand for a particular good is between zero and -1, _____.
A)demand is elastic 
B)demand is inelastic 
C)demand is unit-elastic 
D)the good is an inferior good 
E)the good is a normal good

Quizplus · Accepted Answer

When the elasticity of demand for a particular good is between zero and -1, it means that the percentage change in quantity demanded is less than the percentage change in price, indicating that demand is inelastic.

​Figure 53

Figure 53