Demand Is Said to Be Price Elastic at a Point

question 59

Multiple Choice

Demand is said to be price elastic at a point on a demand curve if a

• A)1 percent rise in price reduces the quantity demanded by more than 1 percent.
• B)1 percent rise in price reduces the quantity demanded by less than 1 percent.
• C)1 percent rise in price reduces the quantity demanded by more than 10 percent.
• D)10 percent rise in price reduces the quantity demanded by less than 10 percent.

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Definitions:

Cash Surrender Value

The amount of money an insurance policyholder can receive from the insurer by canceling the policy before it matures or the insured event occurs.

Outstanding

Exceptionally good or prominently distinguished; can also refer to something that is yet to be paid, completed, or resolved.

Insurance Policy

A contract between an individual or entity and an insurance company, detailing the terms for the payment of claims in the event of loss.

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An area where armed conflict is taking place, often recognized as such by military authorities.