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Type of elasticity in which the percentage change in the independent variable (usually price) causes a less than proportionate change in the dependent variable (usually quantity demanded or supplied)?

a) Perfectly elastic
b) Perfectly inelastic
c) Inelastic
d) Elastic

User Andy Lobel
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1 Answer

3 votes

Final answer:

The correct answer to the question is (c) inelastic, indicating a scenario where price changes result in a less than proportionate change in quantity demanded or supplied.

Step-by-step explanation:

The type of elasticity where the percentage change in the independent variable (usually price) causes a less than proportionate change in the dependent variable (usually quantity demanded or supplied) is known as inelastic. In this case, a given percentage change in price will cause a smaller percentage change in quantity demanded or supplied. Inelastic demand or supply curves reflect a situation where consumers or producers are not very responsive to price changes. For example, if the price of a product increases by 10%, and the quantity demanded only decreases by 5%, the demand is considered inelastic.

User Yeraldine
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