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.

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Definitions:

Machine Products Division

A specialized department or section within a company focused on the manufacturing and distribution of machine-based products.

Transfer Price

The price charged for goods or services sold between departments or subsidiaries within the same company.

Pump Division

A segment within a company that specializes in the production, sale, and maintenance of pump equipment.

Pool Products Division

A specific division within a company that focuses on the development, production, and sales of products related to swimming pools, such as pool chemicals, filters, and equipment.