Economics 0455 · IGCSE · Price elasticity of demand (PED)

Price elasticity of demand (PED) — practice question

A German car manufacturer estimates that the price elasticity of demand (PED) for its cars is $-2.0$. What may be inferred from this information?

  • Aits cars are price elastic
  • Bits cars are price inelastic
  • Cits cars are unitary elastic
  • Dits cars take time to produce

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