If tablets have an absolute price elasticity of 1, the demand for tablets is
A. unit elastic.
B. inelastic.
C. perfectly elastic.
D. elastic.
Answer: A
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Which components of aggregate expenditure change as a result of real GDP changing?
A) consumption expenditure, investment, and government expenditure on goods and services B) consumption expenditure and investment C) consumption expenditure and imports D) consumption expenditure and government expenditure on goods and services E) consumption expenditure, investment, and exports
How is recession defined by the National Bureau of Economic Research [NBER]?
a. Two consecutive quarters of declining GDP b. A significant decline in total output, income, employment, and trade for six months to one year c. A dramatic decline in unemployment for less than six months d. A sharp increase in money supply and the market rate of interest e. A significant decline in stock prices over three consecutive quarters of a business year
A supply curve is defined as the relationship between:
A. the price of a good and the quantity that consumers are willing to buy. B. the price of a good and the quantity that producers are willing to sell. C. the income of consumers and the quantity of a product that consumers are willing to buy. D. the income of consumers and the quantity of a product that producers are willing to sell.
Refer to Figure 24.3. Which of the following statements is true about the price elasticity of demand at price P2?
A. The price elasticity is inelastic. B. The price elasticity is zero. C. The price elasticity is unitary. D. The price elasticity is elastic.