If the Price of a Good Decreases by 5 Percent

question 17

Multiple Choice

If the price of a good decreases by 5 percent and total revenue does not change, then the price elasticity of demand is

• A)perfectly elastic.
• B)unit elastic.
• C)equal to 0.5.
• D)equal to 1.05.
• E)perfectly inelastic.

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Definitions:

Balance of Trade

The difference in value between a country's imports and exports over a certain period, indicating the economic health of a nation.

Columbian Period

The era in history following the arrival of Christopher Columbus in the Americas in 1492, marking the beginning of widespread European exploration and colonization.

Trade

The exchange of goods and services between people or entities, often in exchange for money, which is a fundamental aspect of economic activity and interaction.

Pueblos

Indigenous communities in the Southwestern United States, known for their unique adobe and stone dwellings and rich cultural heritage.