If a 1 Percent Decrease in the Price of Breakfast

question 161

Multiple Choice

If a 1 percent decrease in the price of breakfast cereals results in a 2 percent increase in the quantity demanded for breakfast cereals, then the price elasticity of the demand for breakfast cereals is

• A)2 cents.
• B)2 pounds of breakfast cereals.
• C)2 percent.
• D)$2.
• E)2.

---

Definitions:

George Kelly

An American psychologist known for his theory of personal constructs, which suggests that individuals use personal systems to understand and predict the world.

Hierarchy of Needs

A theory proposed by Abraham Maslow that suggests human needs are organized in a hierarchical structure, starting from basic physiological needs to higher levels of needs such as self-actualization.

Self-actualization

The achievement of realizing one’s capabilities and talents, viewed as a fundamental desire or necessity inherent in all individuals.

Abraham Maslow

A psychologist known for creating Maslow's hierarchy of needs, a theory in psychology regarding human motivation based on a pyramid of needs.