When Demand Is ____ a Percentage Change in ____ Is

question 4

Multiple Choice

When demand is ____ a percentage change in ____ is exactly offset by the same percentage change in ____ demanded,the net result being a constant total consumer expenditure.

• A) elastic; price; quantity
• B) unit elastic; price; quantity
• C) inelastic; quantity; price
• D) inelastic; price; quantity
• E) none of the above

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Definitions:

Vickrey Auction

A sealed-bid auction where the highest bidder wins but pays the amount bid by the second-highest bidder.

Willingness To Pay

The maximum amount an individual is ready to spend to acquire a good or service.

Expected Revenue

The forecasted amount of money that a business anticipates receiving over a certain period, based on projected sales volume and unit price.

Probability

A gauge for the chances of an event taking place, measured by numbers from 0 to 1.