We say that a good has elastic demand whenever the absolute value of the price elasticity of demand is greater than 1. A 1 percent change in price therefore causes

A) exactly a 1 percent change in the quantity demanded.
B) a change of less than 1 percent in the quantity demanded.
C) a greater than 1 percent change in quantity demanded.
D) a change that cannot be determined based on 1 percent.


C

Economics

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The figure above provides information about Light-U-Up Utilities, which is a natural monopoly that provides electricity. What is the area of deadweight loss when Light-U-Up produces the unregulated, profit-maximizing level of output?

A) abd B) acg C) deg D) There is no deadweight loss.

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According to the law of diminishing returns, if population grows, but the amount of available resources stays the same, output will ______.

a. fall at an inverse rate b. stay the same c. rise, but by ever shrinking amounts d. rise at a steady rate

Economics

Since 1980, most nation shave increased tariff rates.

Answer the following statement true (T) or false (F)

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The rate of interest charged to commercial banks by the Fed for loans is called the ________ rate

A) discount B) commercial paper C) federal funds D) prime

Economics