Question

In the following Question, read the following statement and choose the correct alternative among those given:

Statement 1: Coefficient of price elasticity of demand ranges from one to infinity. 

Statement 2: The coefficient of price elasticity of demand is a pure number and is independent of price and quantity units.

विकल्प

• Both the Statements are true.

• Both the Statements are false.

• Statement 1 is true and Statement 2 is false.

• Statement 2 is true and Statement 1 is false.

Answer 1

Statement 2 is true and Statement 1 is false.

Explanation:

Price elasticity can range from zero to infinity, so Statement 1 is false. It is a unit-free measure because it uses percentage changes, making Statement 2 true.