When the Price of a Good Increases by 5 Percent,the

question 164

Multiple Choice

When the price of a good increases by 5 percent,the quantity demanded decreases by 10 percent.The price elasticity of demand is ________.A price rise will ________ total revenue.

• A)2.0;decrease
• B)0.5;decrease
• C)2.0;increase
• D)0.5;increase
• E)-2.0;decrease

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Definitions:

Bias

A tendency to think in a certain way or to follow certain procedures regardless of the facts of the matter.

Mental Representation

The mind's ability to hold a mirror to the world by representing objects, events, or states of affairs internally.

Recalled

Brought back into one's mind; remembered.

Flashbulb Memories

Vivid, detailed recollections of significant or traumatic events, which are imprinted with high clarity as if taken by a camera’s flash.