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 2
Demand 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
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Sonal bought a coat for $198.88, which included 8% PST and 5% GST. What was the selling price ...