If a good has unitary price elasticity of demand, then the absolute value of the percentage change in
A. quantity demanded and the absolute value of the corresponding percentage change in price both equal one-half and total one.
B. the quantity demanded equals the absolute value of the corresponding percentage change in price.
C. quantity exactly equals one.
D. price exactly equals one.
Answer: B
You might also like to view...
Other things constant, which of the following would tend to increase the demand for Disney World vacations?
A) A rise in the price of Hawaiian vacations (a substitute for Disney World) B) A rise in income, if Disney World vacationing is a normal good C) A fall in the price of air travel (a complementary good) D) New information that Disney World will raise its prices once the summer season is over E) All of the above.
An import quota will make the supply curve for the imported good
A) perfectly inelastic. B) perfectly elastic. C) unitary elastic. D) negatively sloped.
Domestic income has a ______ relationship with net export spending.
A. negative B. positive C. secondary D. constant
What happens to aggregate demand as the price level increases?
a. It increases. b. It decreases. c. It remains constant. d. It moves away from equilibrium.