When quantity moves proportionately to the same amount as price, demand is: a. e
ID: 1168436 • Letter: W
Question
When quantity moves proportionately to the same amount as price, demand is:
a. elastic, and the price elasticity of demand is 1.
b. perfectly elastic, and the price elasticity of demand is infinitely large.
c. perfectly inelastic, and the price elasticity of demand is 0.
d. unit elastic, and the price elasticity of demand is 1.
a. elastic, and the price elasticity of demand is 1.
b. perfectly elastic, and the price elasticity of demand is infinitely large.
c. perfectly inelastic, and the price elasticity of demand is 0.
d. unit elastic, and the price elasticity of demand is 1.
Explanation / Answer
A)
If quantity moves same amount as price, Then the elasticity of demand is 1.
1 unit decrease of price will lead to increase in consumption of 1 unit.
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