A Unit Price Elastic Demand Exists If a 10 Percent

question 107

Multiple Choice

A unit price elastic demand exists if a 10 percent change in the price of a good results in a percentage change (in absolute value terms) in quantity demanded that is:

• A) less than 0.
• B) greater than 0 but less than 10.
• C) equal to 10.
• D) greater than 10.

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Definitions:

Percentage

A proportion or share in relation to a whole, typically expressed as a fraction of 100.

Term Bond

A type of bond that has a specific maturity date on which the principal or par value is repaid to the investors.

Face Value

The nominal or original value of a security or financial instrument as stated by the issuer, unrelated to its market value.

Specific Date

Refers to a detailed and exact date on the calendar specified for an event or deadline.