Multiple Choice
The demand for good A is unit elastic if
A) a 5 percent fall in the price of A results in an infinite increase in the quantity of A demanded.
B) a 5 percent rise in the price of A results in a 10 percent decrease in the quantity of A demanded.
C) any increase in the price of A results in a 1 percent decrease in the quantity of A demanded.
D) a 5 percent rise in the price of A results in no change in the quantity of A demanded.
E) a 5 percent rise in the price of A results in a 5 percent decrease in the quantity of A demanded.
Correct Answer:
Verified
Correct Answer:
Verified
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