If the Quantity of a Good Sold Varies Greatly from Small

question 2

Multiple Choice

If the quantity of a good sold varies greatly from small changes in the price, the good is

• A) highly inelastic.
• B) unitary elastic.
• C) not elastic.
• D) highly elastic.

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Definitions:

Unemployment Rate

The unemployment rate is a metric that quantifies the proportion of the workforce that is without a job and is actively looking for work.

CPI

The Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, used to assess price changes in the cost of living.

Price Level

A measure of the average prices of goods and services in an economy at a specific time, influencing purchasing power and economic policy.

Nominal Rate

The interest rate as stated without adjusting for inflation, representing the face value of financial transactions.