Suppose the Quantity of Root Beer Demanded Decreases from 105,000

question 112

Multiple Choice

Suppose the quantity of root beer demanded decreases from 105,000 litres per week to 95,000 litres per week when the price rises by 5 percent.The price elasticity of demand is

• A)2.0.
• B)0.5.
• C)10.
• D)0.02.
• E)50.

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Definitions:

False Memory

A psychological phenomenon where a person recalls something that did not happen or recalls it differently from the way it actually happened.

Loftus and Coan

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