If Demand Is Unit Elastic, Then

question 174

Multiple Choice

If demand is unit elastic, then

• A) a ten percent increase in price leads to a one percent decrease in quantity demanded.
• B) the percentage change in quantity demanded equals the percentage change in price.
• C) a two percent increase in price leads to a two percent decrease in quantity demanded.
• D) an increase in price of any amount leads to quantity demanded falling to zero.

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Definitions:

Imperialism

A policy or practice by which a country extends its power and dominion over other nations or territories through colonization, military conquest, or economic domination.

Usury

is the practice of charging excessively high interest rates on loans, which has historically been considered morally reprehensible by many societies.

Maritime Power

Maritime power refers to a nation's strength and capability in navigating, controlling, and utilizing the seas for military, trade, or exploration purposes.

Signoria

A form of government in Italian city-states during the medieval and Renaissance periods, characterized by rule by a single lord or a hereditary ruling family.