If the Price Elasticity of Demand for a Product Is

question 182

Multiple Choice

If the price elasticity of demand for a product is 1 in absolute value, and the price elasticity of supply of the same product is 1, what is the predicted percent change in price from a 1 percent increase in demand?

• A) a rise in price of 0.5 percent
• B) a rise in price of 2 percent
• C) a fall in price of 0.5 percent
• D) a fall in price of 2 percent

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Definitions:

Movable Equipment

Equipment that can be easily transported or moved, often used in various industries for operational flexibility.

Sophisticated Electronic

Advanced electronic systems or devices that have complex functions and capabilities.

Mass Customizer

A business strategy that combines the efficiency of mass production with the personalization of custom manufacturing, allowing for individual customer preferences at scale.

Repetitive Manufacturer

A type of manufacturing operation where the same products or components are produced in a continuous flow or on a regular basis.