Demand Is Unit Elastic When

question 125

Multiple Choice

Demand is unit elastic when

• A)an increase in supply does not change the price of the good.
• B)a decrease in supply raises the price of the good.
• C)a change in price does not change total revenue.
• D)the slope of the demand curve is -1.
• E)the slope of the demand curve is +1.

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Definitions:

Net Cash Flows

The total amount of cash being transferred into and out of a business, reflecting the company's overall financial health over a specific period.

Amortization Period

The length of time over which the principal of a debt is scheduled to be paid down through amortization.

Discounted Cash Flow

A valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for time value of money.

Payback Period

The duration required to recover the initial investment in a project or asset, based on the cash inflows that the investment generates.