The Amount of a Good That Must Be Given Up

question 176

Multiple Choice

The amount of a good that must be given up to produce another good is the concept of:

• A) scarcity.
• B) specialization.
• C) trade.
• D) efficiency.
• E) opportunity cost.

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Definitions:

Inelastic

A characteristic of a good where its demand does not significantly change with changes in price.

Percentage Change

A mathematical calculation that describes the relative change between an old value and a new value, expressed as a percentage.

Unit Elastic

A situation in demand or supply where a change in price leads to an equal proportionate change in quantity demanded or supplied.

Approximately Unit Elastic

A situation in economics where the percentage change in quantity demanded is roughly equal to the percentage change in price, indicating an elasticity of demand close to one.