Question

Which of the following is not characteristic of the demand for a commodity that is elastic? group of answer choices

O total revenue declines if price is increased.
O the elasticity coefficient is less than one.
O the relative change in quantity demanded is greater than the relative change in price.
O buyers are relatively sensitive to price changes.

Answer 1

The characteristic not applicable to elastic demand is that the elasticity coefficient is less than one, because this indicates inelastic demand instead.

Step-by-step explanation:

Amongst the choices provided, the characteristic that is not of the demand for a commodity that is elastic is 'the elasticity coefficient is less than one.'

Elastic demand occurs when the elasticity of demand is greater than one, indicating a high responsiveness of quantity demanded to changes in price. If the elasticity coefficient is less than one, the demand is considered to be inelastic, as it indicates low responsiveness to price changes. Thus, when the elasticity is less than one, it contradicts the definition of elastic demand, making it the incorrect characteristic in the context of the question.

In the context of demand for a commodity, the characteristic that is not associated with elasticity is when the elasticity coefficient is less than one. Elasticity refers to the responsiveness of quantity demanded to changes in price. When the elasticity coefficient is less than one, it signifies an inelastic demand where the quantity demanded is not greatly affected by price changes.