Which One of the Following Illustrates an Elastic Demand

question 20

Multiple Choice

Which one of the following illustrates an elastic demand?

• A)A 10 percent rise in price leads to a 5 percent decrease in quantity demanded.
• B)A 10 percent rise in price leads to a 20 percent decrease in quantity demanded.
• C)A price elasticity of demand equal to 0.2.
• D)A price elasticity of demand equal to 1.0.
• E)A price elasticity of demand equal to zero.

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Definitions:

Netherlands

A country located in Northwestern Europe, known for its flat landscape, windmills, tulip fields, and cycling routes.

Individualism

A social theory favoring freedom of action for individuals over collective or state control.

Personal Goals

Objectives or aims that an individual sets for themselves, reflecting personal aspirations and ambitions.

Group Goals

Objectives set by a group that are intended to be achieved through collaborative effort.