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:

Desires

Strong feelings of wanting or wishing for something to happen or be the case.

Goals

Desired results or objectives that an individual or organization aims to achieve within a certain timeframe.

Vested Interest

A personal stake or involvement in an undertaking or situation, especially one expecting to gain some personal benefits.

Comprehensiveness

The quality of being complete and including all or nearly all elements or aspects of something.