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:

Room Temperature

The ambient temperature of a room, typically considered to be about 20 to 22 degrees Celsius (68 to 72 degrees Fahrenheit).

Hydrogen Bonding

A weak bond between two molecules resulting from an electrostatic attraction between a proton in one molecule and an electronegative atom in the other.

Surface Tension

Force that holds moist membranes together due to the attraction of water molecules through hydrogen bonds.

Water Molecules

The smallest unit of water (H2O), consisting of two hydrogen atoms covalently bonded to one oxygen atom, essential for most forms of life on Earth.