Unit Elastic Demand Means That the

question 208

Multiple Choice

Unit elastic demand means that the

• A) ratio of a change in the quantity demanded to a change in the price equals 1.
• B) ratio of a percentage change in the quantity demanded to a percentage change in the price equals 1.
• C) demand curve is vertical.
• D) demand curve is horizontal.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount they actually pay.

Marginal Utility

The additional satisfaction or utility that a consumer derives from consuming one more unit of a good or service.

Marginal Utility

It describes the additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.

Total Utility

The overall satisfaction or benefit received by consuming a product or service.