Suppose at a Price of $10 the Quantity Demanded Is

question 176

Multiple Choice

Suppose at a price of $10 the quantity demanded is 100.When price falls to $8, the quantity demanded increases to 130.The price elasticity of demand between the prices of $10 and $8 is approximately:

• A) -1.17.
• B) -1.50.
• C) -0.85.
• D) -1.00.

---

Definitions:

Moral Hazard

The possibility that individuals who are insulated from risk sometimes behave differently than they would if not insulated.

Risk Insulation

Strategies or practices employed to protect an entity from potential financial losses or liabilities.

Risk Management

The transfer and distribution of risk.

Transfer and Distribution

The process of moving goods from one location to another and allocating them among parties or points of sale.