When the Percentage Change in Quantity Demanded Is Numerically Less

question 59

Multiple Choice

When the percentage change in quantity demanded is numerically less than the percentage change in price,ceteris paribus,demand is:

• A) Elastic.
• B) Inelastic.
• C) Unitary elastic.
• D) Perfectly elastic.

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Definitions:

Variable Costs

Charges that adjust in accordance with the level of output or service delivered by an enterprise.

Financial Break-Even

The point at which total revenues and total costs are equal, meaning a project or business is neither making a profit nor a loss.

Sensitivity Analysis

An approach to assess how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

Financial Break-Even

The point where total revenues equal total costs, leading to neither a profit nor a loss.