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If Elasticity of Demand Is 1

question 25

Essay

If elasticity of demand is 1.0 and price is lowered from $100 to $99,by what percentage will quantity demanded rise?


Definitions:

Investment

The distribution of funds or assets with the intention of earning financial returns or profits.

Interest

Expenses incurred for the authorization to take out a loan, frequently shown as an annual rate in percentage.

Term Deposit

A financial product offered by banks that earns interest and is held for a predetermined period until it reaches the date of maturity.

Simple Interest Rate

An interest rate calculated only on the principal amount, not on previously earned interest.

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