If Elasticity of Demand Is 0

question 19

Multiple Choice

If elasticity of demand is 0.1,a 1% increase in price will lower quantity demanded by

• A)0.01%.
• B)0.1%.
• C)1.0%.
• D)10%.
• E)100%.

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Definitions:

Corporation

A legal entity recognized by law as a separate entity from its owners, characterized by limited liability, perpetual succession, and the ability to raise capital through the issuance of shares.

Partnership

A business arrangement legally recognized, where two or more partners collaborate in managing the business and splitting the profits.

Legal Structure

The framework of laws and regulations within which individuals, businesses, and organizations operate.

Trade Alliance

A partnership between two or more countries or organizations to improve trade relations and economic cooperation.