Demand Is Unit Elastic Whenever _____

question 6

Multiple Choice

Demand is unit elastic whenever _____

• A)price elasticity has an absolute value of 1.
• B)price elasticity has an absolute value greater than 1.
• C)price elasticity has an absolute value less than 1.
• D)price elasticity is negative.
• E)consumers do not respond to a change in price.

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Definitions:

Transnational Firm

A company that operates beyond its home country, managing production or delivering services in more than one country.

Multinational Firm

A business which functions across various nations, overseeing the manufacturing or provision of services beyond its original country.

World Trade Organization (WTO)

A permanent institution that sets rules governing trade between its members through panels of trade experts who decide on trade disputes between members and issue binding decisions.

Economic Flows

Economic flows refer to the movement of goods, services, money, and resources among individuals, businesses, and nations, comprising the economic activities of a global economy.