When the Absolute Price Elasticity of Demand Equals 1, Demand

question 34

Multiple Choice

When the absolute price elasticity of demand equals 1, demand is

• A) elastic.
• B) unit-elastic.
• C) inelastic.
• D) undetermined without more information.

---

Definitions:

Industry Standard

A prevalent practice, process, or guideline followed within a specific industry to ensure quality, safety, and efficiency.

Debt Financing

Raising funds for a company by selling debt instruments to individuals or institutional investors.

Liquidity

This concept describes how easily an asset or security can be converted into ready cash without affecting its market price.

Asset Management

The approach to build, operate, preserve, and trade assets in a financially efficient manner.