Assuming Price Elasticity of Demand Is Reported as an Absolute

question 109

Multiple Choice

Assuming price elasticity of demand is reported as an absolute value,a price elasticity of one indicates:

• A) the percentage change in quantity demanded will equal the percentage change in price.
• B) the percentage change in quantity demanded will equal one.
• C) both the percentage change in price and quantity demanded must equal one.
• D) the percentage change in quantity demanded and the percentage change in price must sum to one.

---

Definitions:

Purchases Shift

A change in the buying behavior of consumers, often referring to a movement in demand for goods or services in the market.

Utility Change

refers to changes in the level of satisfaction or happiness that a consumer derives from consuming goods or services, indicating shifts in preferences or economic circumstances.

Marginal Utility

The increase in satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Total Utility

The complete fulfillment derived from the consumption of a specific amount of products or services.