The Price Elasticity of Demand for Oil Is Estimated at 0.05

question 76

Multiple Choice

The price elasticity of demand for oil is estimated at 0.05. This value means a 10 percent increase in the

• A) quantity of oil demanded will result from a 0.5 percent increase in the price of oil.
• B) quantity of oil demanded will result from a 0.5 percent decrease in the price of oil.
• C) price of oil will increase the quantity of oil demanded by 0.5 percent.
• D) price of oil will decrease the quantity of oil demanded by 0.5 percent.

---

Definitions:

Skeletal Muscles

Voluntary muscles attached to the skeleton that are responsible for movement and are controlled consciously.

Hyoid Bone

A U-shaped bone in the neck that supports the tongue and is associated with swallowing and speech.

Omohyoid

A muscle in the neck that acts to lower the hyoid bone and larynx during swallowing and speech.

Thyrohyoid

A muscle in the neck that depresses the hyoid bone and raises the larynx during swallowing and speaking.