When Demand Is Unit Elastic, a 10 Percent Change in the Price

question 202

Multiple Choice

When demand is unit elastic, a 10 percent change in the price of the good

• A) will cause a change in quantity demanded of less than 10 percent.
• B) will cause a change in quantity demanded equal to 10 percent.
• C) will cause a change in quantity demanded greater than 10 percent.
• D) will not cause any change in quantity demanded.

---

Definitions:

Independence

In probability and statistics, a condition where two events or variables have no influence on each other's occurrence or value.

Homogeneity

The quality or state of being uniform in composition or character; in statistics, it refers to the similarity of elements or observations within groups.

Tests of Homogeneity

Statistical tests used to determine if different populations have the same variance or other characteristics.

Binomial Populations

Populations that follow a binomial distribution, characterized by fixed number of trials, two possible outcomes, constant probability of success, and independence of trials.