If the Price Elasticity of Demand for Good a Is

question 118

Multiple Choice

If the price elasticity of demand for Good A is -0.2 and the price increases from $2.25 to $2.75,the percentage change in the quantity demanded of Good A is

• A)-100 percent.
• B) 100 percent.
• C) 4.0 percent
• D) -4.0 percent.
• E) unknown because not enough information is provided.

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Definitions:

Semi-annually

Occurring twice a year or every six months.

Compounded

The process of calculating interest on both the initial principal and the accumulated interest from previous periods, leading to an increase in interest earnings over time.

Quarterly

Pertaining to a period of three months or occurring every three months.

Retires

Withdraws from active working life, often due to reaching a certain age or completing a specific length of service.