Unit elastic demand occurs when
a. a one-unit increase in price leads to a one-unit decrease in quantity demanded
b. a 1 increase in price leads to a one-unit decrease in quantity demanded
c. price elasticity of demand is positive
d. price elasticity of demand is exactly zero
e. price elasticity of demand is exactly -1
QUESTION 2Demand is elastic whenever
a. price elasticity has an absolute value of 1
b. price elasticity has an absolute value greater than 1
c. price elasticity has an absolute value less than 1
d. price elasticity is negative
e. consumers respond to a change in price
QUESTION 3If the price of Pepsi-Cola increases from 50 cents to 60 cents per can and the quantity demanded decreases from 100 cans to 50 cans, then the demand for Pepsi-Cola is
a. unit elastic
b. perfectly elastic
c. perfectly inelastic
d. relatively elastic
e. relatively inelastic
QUESTION 4Demand is unit elastic whenever
a. price elasticity has an absolute value of 1
b. price elasticity has an absolute value greater than 1
c. price elasticity has an absolute value less than 1
d. price elasticity is negative
e. consumers always respond to a one-dollar change in price by decreasing their quantity demanded by one unit
QUESTION 5Demand is inelastic if
a. the percentage change in price is greater than the percentage change in quantity demanded
b. the percentage change in price is less than the percentage change in quantity demanded
c. the percentage change in price is equal to the percentage change in quantity demanded
d. the value of price elasticity is equal to -1
e. the value of price elasticity is less than -1 (e.g., -3)
QUESTION 6Demand is inelastic only if
a. price elasticity has an absolute value of 1
b. price elasticity has an absolute value greater than 1
c. price elasticity has an absolute value less than 1
d. price elasticity is negative
e. consumers do not respond to a change in price
QUESTION 7If an increase in the price of a product from 100 to 200 per unit leads to a decrease in the quantity demanded from 10 to 8 units, then demand is
a. elastic
b. inelastic
c. unit elastic
d. 0
e. inferior
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