If the Value of the Price Elasticity of Demand Is

question 187

Multiple Choice

If the value of the price elasticity of demand is -0.2, this means that a

• A)20 percent decrease in price causes a 1 percent increase in quantity demanded
• B)0.2 percent decrease in price causes a 1 percent increase in quantity demanded
• C)5 percent decrease in price causes a 1 percent increase in quantity demanded
• D)0.2 percent decrease in price causes a 0.2 percent increase in quantity demanded
• E)100 percent decrease in price causes a 200 percent increase in quantity demanded

---

Definitions:

Chaco Canyon

A region in New Mexico that hosts ancient Native American ruins and is noted for its archaeological significance and cultural heritage.

British Colonial America

Refers to the territories in North America that were under British rule from the early 17th century until the American Revolution in 1776.

Borderland

A place between or near recognized borders where no group of people has complete political control or cultural dominance.

Geographical Border

A naturally or artificially designated boundary separating distinct areas, countries, or territories.