The Demand for Good a Is Unit Elastic If

question 12

Multiple Choice

The demand for good A is unit elastic if

• A)a 5 percent fall in the price of A results in an infinite increase in the quantity of A demanded.
• B)a 5 percent rise in the price of A results in a 10 percent decrease in the quantity of A demanded.
• C)any increase in the price of A results in a 1 percent decrease in the quantity of A demanded.
• D)a 5 percent rise in the price of A results in no change in the quantity of A demanded.
• E)a 5 percent rise in the price of A results in a 5 percent decrease in the quantity of A demanded.

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