If the Price Elasticity of Demand Is 2,then a 1

question 37

Multiple Choice

If the price elasticity of demand is 2,then a 1 percent fall in price

• A)doubles the quantity demanded.
• B)decreases the quantity demanded by half.
• C)increases the quantity demanded by 2 percent.
• D)decreases the quantity demanded by 2 percent.
• E)increases the quantity demanded by 0.5 percent.

---

Definitions:

Withdraw The Offer

The act of revoking or cancelling a proposal or bid that had previously been made.

Present Obligation

A current duty or responsibility that an entity has as a result of past events, which will likely require an outflow of resources.

Restructuring

The process of organizing a company or its operations differently to increase efficiency or improve profitability, often involving changes in business model, operations, or staff.

Historical Pattern

Trends or sequences in data that have been observed to repeat over historical periods, often used for forecasting and analysis.