Demand Is Unit Elastic Whenever

question 115

Multiple Choice

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

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Definitions:

Accounts Payable

Money owed by a company to its creditors for goods and services that have been purchased on credit.

Gain

An increase in wealth or resources, typically realized through the sale of an asset for more than its purchase price.

Accrued Selling Expenses

Expenses that have been incurred but not yet paid in the selling process, recorded on the balance sheet.

Accrued Income Taxes

Taxes that have been incurred, but not yet paid, usually recognized at the end of an accounting period.