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    Question

    In economic terms, when is a demand or supply considered

    inelastic?
    A Greater than one Correct Answer Incorrect Answer
    B Equal to one Correct Answer Incorrect Answer
    C Less than one Correct Answer Incorrect Answer
    D None of the above Correct Answer Incorrect Answer

    Solution

    A demand or supply is considered inelastic when its elasticity is less than one. This indicates that the quantity demanded or supplied changes by a smaller percentage than the change in price, demonstrating low responsiveness to price variations.

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