For Demand to Be Unit Elastic

question 19

Multiple Choice

For demand to be unit elastic,

• A)the percentage change in quantity demanded must be equal to the associated percentage change in price.
• B)the percentage change in quantity demanded must be less than the associated percentage change in price.
• C)quantity demanded must change with a change in price.
• D)demand must change with a change in price.
• E)the percentage change in quantity demanded must be greater than the associated percentage change in price.

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Definitions:

Total M1

A measure of the money supply that includes all physical money, such as coins and currency, as well as demand deposits, traveler's checks, and other checkable deposits.

Currency Accounts

Accounts that hold foreign currencies, allowing the account holder to make international transactions more efficiently.

Interest Rates

The percentage of a loan amount charged by lenders to borrowers for the use of assets, typically expressed annually.

Rate of Inflation

The percentage at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.