If the demand for a steak is unit elastic, then
A) the percentage change in quantity demanded is 100 percent greater than the percentage change in price (in absolute value).
B) quantity demanded does not respond to changes in price.
C) the percentage change in quantity demanded is equal to the percentage change in price.
D) the percentage change in quantity demanded is 1 percent greater than the percentage change in price.
Question 2
Public saving in the economy can be increased by
A) raising taxes. B) raising government spending.
C) raising transfer payments. D) lowering taxes.
