A Unit Elastic Demand

question 27

Multiple Choice

A unit elastic demand

• A)means that the ratio of a change in quantity demanded to a change in price is equal to 1.
• B)means that the ratio of a percentage change in quantity demanded to a percentage change in price is equal to 1.
• C)means that the ratio of a change in price to a change in quantity demanded is equal to 1.
• D)is illustrated by a horizontal demand curve.
• E)is illustrated by a vertical demand curve.

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Definitions:

Double Rule

A method used in accounting to underline totals for certain accounts or figures, indicating a sum or conclusion.

Closing Process

The series of steps performed at the end of an accounting period to prepare the books for the next period, including updating accounts and transferring balances.

Income Summary

An account in the ledger that aggregates all income and expense accounts to determine the net profit or loss for a certain period.

Revenue Accounts

Accounts that track the income generated from a company's primary operations and activities.