If the Price Elasticity of Demand Is Equal to 2

question 11

Multiple Choice

If the price elasticity of demand is equal to 2, a 1 percent increase in price will cause the quantity demanded to ____ by ____ percent.

• A)decrease; 5
• B)increase; 2
• C)decrease; 0.5
• D)decrease; 2
• E)increase; 0.5

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Definitions:

Dysfunctional Conflict

An unhealthy, destructive disagreement between two or more people.

Conflict Management

The practice of recognizing and dealing with disputes in a rational, balanced, and effective way, aiming to reach a resolution that benefits all parties involved.

Organizational Vitality

Refers to the dynamic capability of organizations to sustainably adapt, innovate, and compete in their environment.

Group Cohesion

The extent to which members of a group stick together and remain united in pursuit of common goals.