Assuming Price Elasticity of Demand Is Reported as an Absolute

question 52

Multiple Choice

Assuming price elasticity of demand is reported as an absolute value, a price elasticity of one indicates that:

• A) the percentage change in quantity demanded will equal the percentage change in price.
• B) the percentage change in quantity demanded will equal one.
• C) both the percentage change in price and quantity demanded must equal one.
• D) the percentage change in quantity demanded and the percentage change in price must sum to one.

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