If Price Elasticity of Demand Is 1

question 15

Multiple Choice

If price elasticity of demand is 1.0,demand for the commodity is

• A) of unitary elasticity.
• B) price postelastic.
• C) price elastic.
• D) price inelastic.
• E) price preelastic.

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Definitions:

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Profit

The difference between total revenue and total cost.

Yearly Return

The total gain or loss on an investment over a one-year period, expressed as a percentage of the investment’s initial cost.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, and loan payments.