Unit elastic demand means that the
A) ratio of a change in the quantity demanded to a change in the price equals 1.
B) ratio of a percentage change in the quantity demanded to a percentage change in the price equals 1.
C) demand curve is vertical.
D) demand curve is horizontal.
B
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If the price of automobiles were to increase substantially, the demand curve for gasoline would most likely
A) shift leftward. B) shift rightward. C) remain unchanged. D) become steeper.
Which of the following statements is true?
a. The four phases of the business cycle, in order, are: peak, recovery, trough, recession. b. When unemployment is rising then real GDP is rising. c. The economic problem typically associated with a recovery is rising unemployment. d. Full employment exists in an economy when the unemployment rate equals the sum of frictional, and structural unemployment rates.