Suppose That When the Price of Cereal Rises 10 Percent,the

question 160

Multiple Choice

Suppose that when the price of cereal rises 10 percent,the quantity demanded of cereal falls by 5 percent.Based on this information,what is the approximate price elasticity of demand for cereal?

• A) 0.5
• B)-0.5
• C) 2.0
• D)-2.0
• E) 0

---

Definitions:

Trademark

A symbol, word, or phrase legally registered or established by use as representing a company or product, used to distinguish it from others.

Inter Vivos Gift

A gift given by a living person to another which takes effect during their lifetime.

Intestate Distribution

The process of distributing a deceased person's assets according to state laws when they die without a valid will.

Intellectual Property

Rights arising from creation and innovation in the areas of industry, science, literature, and art.