Solved

What Does the Following Statement Imply About Price Elasticity of Demand

Question 57

Multiple Choice

What does the following statement imply about price elasticity of demand? "An unexpected spike in world oil prices leads to dramatic increase in revenue for the world's oil producers."


A) short-run demand for oil is inelastic
B) short-run demand for oil is elastic
C) elasticity of demand for oil is equal to one
D) elasticity of demand for oil is constant
E) elasticity of demand for oil is equal to zero

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q52: Suppose that the quantity demanded of paperback

Q53: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5441/.jpg" alt=" FIGURE 4-2 -Refer

Q54: Consider two demand curves and the same

Q55: Given that elasticity of supply changes over

Q56: If the demand for a product has

Q58: An increase in income will<br>A)increase the demand

Q59: If the total expenditure on photocopiers increases

Q60: If the total revenue of producers rises

Q61: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5441/.jpg" alt=" FIGURE 4-2 -Refer

Q62: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5441/.jpg" alt=" FIGURE 4-3 -Refer