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.

---

Definitions:

Matter

Anything that occupies space.

Mass

A property of physical objects that measures the amount of matter in an object, affecting its resistance to acceleration under a force.

Occupies Space

A characteristic of matter that refers to the requirement of physical space for an object or substance to exist.

Conductor

A material that permits the flow of electric charges in one or more directions, such as metals.