If Price Elasticity of Demand Is -0.5

question 123

Multiple Choice

If price elasticity of demand is -0.5,

• A)a 1% decrease in quantity demanded leads to a 0.5% decrease in price
• B)a 1% decrease in price leads to a 0.5% increase in quantity demanded
• C)a 50% decrease in price leads to a 1% increase in quantity demanded
• D)a 50% decrease in price leads to a 100% increase in quantity demanded
• E)demand is elastic

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Definitions:

Behaviour

The way in which one acts or conducts oneself, especially towards others.

Variations

Differences or deviations in characteristics, form, or behavior among individuals from a common group or within a system.

Cannabis

A plant genus that includes species used for hemp production, as well as those that produce marijuana, known for its psychoactive properties.

Neurotransmitter System

A complex network of neurons communicating through chemical messengers known as neurotransmitters to modulate various physical and psychological functions.