When the absolute price elasticity of demand equals 1, demand is
A) elastic.
B) unit-elastic.
C) inelastic.
D) undetermined without more information.
B
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Evidence of external costs in the production of a product is present if
A) the price of the product is higher than it should be. B) the production cost increases because of an increase in the minimum wage. C) non-buyers and/or non-producers of the product experience a loss for which they are not compensated. D) buyers refuse to purchase the product. E) producers pay all of the costs of producing the good or service.
Which of the following items is likely to have the highest income elasticity of demand?
A) water B) a hamburger C) a luxury cruise to several European countries D) breakfast cereal
Present discounted value refers to the
A. Value today of future payments adjusted for inflation. B. Value today of future payments adjusted for interest accrual. C. Value today of future payments adjusted for risk. D. Future value of today's dollars.
In the United States, the central bank is the:
A. National Bank of the United States. B. Congressional Budgeting Office. C. Federal Reserve. D. Treasury.