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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Definitions:

Confidence interval

A palette of statistical results, extracted from samples, aiming to encompass the unspecified value of a population attribute.

Value of t

A statistic used in hypothesis testing that compares the means of two groups to determine if they are significantly different from each other.

Average hourly income

The mean wage per hour received by workers, reflecting compensation for employment.

Margin of error

A measure indicating the range of values within which the true value is likely to fall, with a certain level of confidence.