1. Consider oil which has a PED of -0.4. What does this number mean? A. Oil demand is elastic B. Oil demand is inelastic C. A 1% increase in the price of oil causes a 0.4% increase in the quantity demanded D. An increase in the price of oil causes the demand for oil to shift right E. Oil supply is highly responsive to changes in the price

Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter7: Demand And Supply
Section7.2: The Demand Curve And Elasticity Of Demand
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1. Consider oil which has a PED of -0.4. What does this number mean?
A. Oil demand is elastic
B. Oil demand is inelastic
C. A 1% increase in the price of oil causes a 0.4% increase in the quantity demanded
D. An increase in the price of oil causes the demand for oil to shift right
E. Oil supply is highly responsive to changes in the price
Transcribed Image Text:1. Consider oil which has a PED of -0.4. What does this number mean? A. Oil demand is elastic B. Oil demand is inelastic C. A 1% increase in the price of oil causes a 0.4% increase in the quantity demanded D. An increase in the price of oil causes the demand for oil to shift right E. Oil supply is highly responsive to changes in the price
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