If an Increase in the Price of a Product from $1

question 61

Multiple Choice

If an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity demanded from 100 to 80 units,then the demand is _____

• A)elastic.
• B)inelastic.
• C)unit elastic.
• D)perfectly elastic.
• E)perfectly inelastic.

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Definitions:

Loanable Funds

The money available in financial systems for borrowing, representing the supply of funds from savers to borrowers.

Identities

Characteristics, qualities, or beliefs that make a particular person or group different from others.

Equilibrium Interest Rate

The interest rate at which the quantity of money demanded is equal to the quantity of money supplied, leading to a balance in the money market.

Loanable Funds

The supply of money available for borrowing in the financial market, determined by savings and demand for borrowing.