Assume That Demand Increases by 1 Percent, the Absolute Value

question 41

Multiple Choice

Assume that demand increases by 1 percent, the absolute value of price elasticity of demand is 1.0, and price elasticity of supply is 1.0. What is the percentage price change in this case?

• A) -1.5
• B) -0.5
• C) 0.5
• D) 1.5

---

Definitions:

Takings Clause

A provision in the Fifth Amendment of the U.S. Constitution that prohibits the government from taking private property for public use without fair compensation.

Private Property

Ownership of land, resources, or objects by individuals or corporations, protected by law.

Just Compensation

The concept that property owners must be fairly compensated when their property is taken for public use under eminent domain.

Public Areas

Spaces that are open and accessible to people, usually owned and maintained by the government, such as parks, streets, and public squares.