We Say That a Good Has Elastic Demand Whenever the Absolute

question 348

Multiple Choice

We say that a good has elastic demand whenever the absolute value of the price elasticity of demand is greater than 1. A 1 percent change in price therefore causes

• A) exactly a 1 percent change in the quantity demanded.
• B) a change of less than 1 percent in the quantity demanded.
• C) a greater than 1 percent change in quantity demanded.
• D) a change that cannot be determined based on 1 percent.

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Definitions:

Network Organization

An organizational structure emphasizing less hierarchical, more flexible, and interconnected arrangements, often through the use of technology.

Innovation

The process of creating new ideas, products, or methods that bring improvement or address specific challenges.

Lateral Communication

The exchange of information between individuals at the same hierarchical level within an organization.

External Stakeholders

Individuals or groups outside of an organization who are affected by its activities and decisions, such as customers, suppliers, and the community.