If the demand curve is unit elastic, this implies that:
a. consumers do not react to a change in product price.
b. the good can only be purchased in units of 1.
c. this good has no good substitutes.
d. the good is a basic food staple.
e. the percentage change in the quantity demanded = the percentage change in product price.
e
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The Ponderosa Bank receives a new deposit of $2,500. The reserves requirement is 20 percent. How much can this bank loan out as a result of this deposit?
A. $25,000 B. $12,500 C. $3,125 D. $2,000 E. $500
Exhibit 4-10 Supply and demand data for apricots Bushels demandedper month Price perbushel Bushels suppliedper month 50 $5 80 55 4 75 60 3 70 65 2 65 70 1 55 Which of the following would occur if the government set a price ceiling of $1 in the market shown in Exhibit 4-10?
A. There would be a shortage of apricots. B. Buyers would not want to purchase all of the apricots that are supplied. C. There would be a surplus of apricots. D. Farmers would reduce the number of acres allocated to the growing of apricots.
The rate of interest banks charge other banks for overnight loans of reserves is the
A) discount rate. B) prime rate. C) federal funds rate. D) real rate.
Payments to households not in exchange for goods and services currently produced are:
a. transfer payments. b. government purchases. c. consumption expenditures. d. investment expenditures.