If a Good Has an Absolute Price Elasticity of 2

question 208

Multiple Choice

If a good has an absolute price elasticity of 2, the demand for the good is

• A) unit elastic.
• B) inelastic.
• C) perfectly elastic.
• D) elastic.

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Definitions:

IFRS 3

Business Combinations, an International Financial Reporting Standard that outlines the accounting and reporting requirements for mergers and acquisitions.

Goodwill

The intangible asset that arises when a company acquires another business for more than the fair value of its separable net assets.

Fair Value

The expected selling price for an asset or the amount needed to cover a liability, facilitated through a systematic deal between market participants on the specific date of measurement.