Unit Elastic Demand Occurs When

question 94

Multiple Choice

Unit elastic demand occurs when

• A)a one-unit increase in price leads to a one-unit decrease in quantity demanded
• B)a 1% increase in price leads to a one-unit decrease in quantity demanded
• C)price elasticity of demand is positive
• D)price elasticity of demand is exactly zero
• E)price elasticity of demand is exactly -1

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Definitions:

Consideration

Something of value (such as goods, services, money, or a promise) exchanged between parties in a contract.

Preexisting Contract

An agreement that was already in place before certain actions were taken or before a dispute arose.

Modification

The act of making changes or alterations to something, such as a document or agreement, often to improve it or make it more suitable.

Past Consideration

Refers to something given or an action that has been taken in the past, which cannot legally serve as a consideration for a present contract.