A Good with a Unit Elastic Demand Has A

question 101

Multiple Choice

A good with a unit elastic demand has a:

• A) perfectly horizontal demand curve.
• B) perfectly vertical demand curve.
• C) price elasticity greater than 1.
• D) price elasticity equal to −1.

---

Definitions:

Expected Rates Of Return

Expected rates of return refer to the anticipated profit or loss from an investment, often based on historical data and analysis of future potentials.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed on an annual basis.

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a period of time, typically measured annually.

Profits

The financial gains obtained when revenue from business activities exceeds expenses, costs, and taxes.