If Apples Have an Own Price Elasticity of −1

question 132

Multiple Choice

If apples have an own price elasticity of −1.2 we know the demand is:

• A) unitary.
• B) indeterminate.
• C) elastic.
• D) inelastic.

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Definitions:

Reserves

Funds or materials set aside for future use or in case of an emergency, often referring to financial or resource stockpiles.

Flexible Exchange Rates

A system under which the value of a country's currency is allowed to fluctuate according to the foreign exchange market.

International Value

The worth or significance of goods, services, or assets on a global scale, often influenced by exchange rates and international trade.

Terms Of Trade

The rate at which units of one product can be exchanged for units of another product; the price of a good or service; the amount of one good or service that must be given up to obtain 1 unit of another good or service.