Suppose the Price Elasticity of Demand for Oil Is 0

question 474

Multiple Choice

Suppose the price elasticity of demand for oil is 0.1. In order to lower the price of oil by 20 percent, the quantity of oil supplied must be increased by

• A) 200 percent.
• B) 20 percent.
• C) 2 percent.
• D) 0.2 percent.

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Definitions:

Ruff Degradation

A chemical process used to shorten the carbon chain of carbohydrates by one carbon atom via oxidation.

Aldaric Acid

A type of sugar acid obtained by the oxidation of both the aldehyde and primary alcohol groups of an aldose.

Ruff Degradation

A chemical process used to shorten the carbon chain of sugars by one carbon atom, involving the oxidation of an aldose sugar to the corresponding aldonic acid, followed by its decarboxylation.

D-aldopentoses

A type of sugar containing five carbon atoms, including an aldehyde group at the first carbon.