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 one-dollar change in price by decreasing their quantity demanded by one unit
A
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If the quantity of money demanded is less than the quantity of money supplied, then the
A) interest rate will decrease. B) interest rate stays the same. C) interest rate will increase. D) effect on the interest rate is indeterminate.
On a graph for the Gini Coefficient, perfect inequality would be represented by the equation ______.
a. G = -1 b. G = 0 c. G = 1 d. G = 100
If there is no one who is interested in borrowing from a bank:
A. the bank's excess reserves will be zero. B. there will be no process of money creation. C. the required reserve ratio must be equal to zero. D. the required reserve ratio must be equal to 100 percent.
If the cross-price elasticity of demand between lettuce and salad dressing is negative, then when the price of lettuce rises, the demand for salad dressing will ________.
A. increase B. become more inelastic C. decrease D. remain the same