Demand is unit elastic whenever
A) price elasticity has an absolute value of 1
B) price elasticity has an absolute value greater than 1
C) price elasticity has an absolute value less than 1
D) price elasticity is negative
E) consumers always respond to a onedollar change in price by decreasing their quantity demanded by one
Unit
Correct Answer:
Verified
Q3: A good synonym for elasticity would be
A)stability
B)volatility
C)stickiness
D)demand
E)responsiveness
Q5: If an increase in the price of
Q7: The price elasticity of demand helps determine
Q16: Another word for elasticity is
A)responsiveness
B)happiness
C)bonus
D)profit
E)surplus
Q21: Demand is inelastic only if
A)price elasticity has
Q22: As price decreases along a linear demand
Q28: If the price of Pepsi-Cola increases from
Q30: Unit elastic demand occurs when
A)a one-unit increase
Q38: Demand is inelastic if
A)the percentage change in
Q45: The price elasticity of demand
A)is of no
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