When Demand Is Unit Elastic, a 7 Percent Change in the Price

question 263

Multiple Choice

When demand is unit elastic, a 7 percent change in the price of the good

• A) will cause a change in quantity demanded of less than 7 percent.
• B) will cause a change in quantity demanded equal to 7 percent.
• C) will cause a change in quantity demanded greater than 7 percent.
• D) will not cause any change in quantity demanded.

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Definitions:

Sole Shareholder

An individual or entity that owns 100% of the shares of a corporation.

Nonshareholder-Creditors

Creditors of an entity who, unlike shareholders, do not own any part of the entity but have a claim on its assets due to outstanding debts.

Shareholder Domination

A situation where a single shareholder or a group of shareholders exercise significant influence or control over the operations of a corporation.

Individual Shareholder

An individual who owns shares in a company, thereby holding a portion of the ownership.