Demand for a Good Is Unit Elastic

question 32

Multiple Choice

Demand for a good is unit elastic.When price rises by 5 percent,total revenue

• A)increases by 5 percent.
• B)decreases by 5 percent.
• C)does not change.
• D)increases by more than 5 percent.
• E)decreases by more than 5 percent.

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Definitions:

Negligence-Based

Pertaining to a cause of action that arises from the failure to exercise a standard of care, resulting in harm to another.

Product Liability Actions

Legal actions taken against manufacturers or sellers for producing or distributing a faulty product that caused harm to the consumer.

Comparative Negligence

A legal principle that reduces the plaintiff's damages based on their percentage of fault in an accident.

Strict Product Liability

A legal doctrine that holds sellers or manufacturers liable for defective products regardless of fault or intent, as long as the product was used as intended.