Let's carefully analyze each statement about elasticity of demand and identify which one is false:
1. Statement A: "Demand for a good can be highly elastic at one price and inelastic at a different price."
- This statement is true. Elasticity of demand can indeed vary at different price levels. For example, a good may be elastic at a higher price and inelastic at a lower price due to changing consumer behavior and necessity.
2. Statement B: "If the elasticity of demand for a good at a certain price is equal to or less than one..."
- This statement seems incomplete. However, if we interpret it to imply that the demand is inelastic (since an elasticity less than one typically indicates inelastic demand), it should indeed be a true statement. Because the statement is incomplete and ambiguous, it stands out as potentially problematic.
3. Statement C: "To calculate elasticity, divide the percentage change in the demand of a good by the percentage change in the price of that good."
- This statement is true. The formula for calculating the price elasticity of demand is: [tex]\[ \text{Elasticity} = \frac{\text{Percentage change in quantity demanded}}{\text{Percentage change in price}} \][/tex]
4. Statement D: "A consumer with highly elastic demand for a good is very responsive to price change."
- This statement is true. Highly elastic demand means that even a small change in price leads to a significant change in the quantity demanded. Therefore, consumers are very responsive to price changes.
After thoroughly reviewing each statement, the false statement is:
Statement B: "If the elasticity of demand for a good at a certain price is equal to or less than one..."
This statement is false due to its incomplete nature and lack of clear, meaningful context.
