If Demand Is Unit Elastic, Then

question 174

Multiple Choice

If demand is unit elastic, then

• A) a ten percent increase in price leads to a one percent decrease in quantity demanded.
• B) the percentage change in quantity demanded equals the percentage change in price.
• C) a two percent increase in price leads to a two percent decrease in quantity demanded.
• D) an increase in price of any amount leads to quantity demanded falling to zero.

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Definitions:

Buyer Behaviour

The actions and decision processes of individuals or organizations in selecting, purchasing, using, and disposing of products and services.

Exchange Process

The act of giving one thing and receiving another, especially of a similar type, in the context of business, social, or interpersonal interactions.

Consumer Behaviour

The analysis of the ways in which individuals, collectives, or organizations pick, purchase, apply, and dispose of goods, services, experiences, or notions to satisfy requirements, and the consequences these ways have on consumers and the social environment.

Process

A series of actions or steps taken in order to achieve a particular end.