The Price Elasticity of Demand for a Given Good Is

question 151

Multiple Choice

The price elasticity of demand for a given good is 2.3. This implies that if price

• A)rises by 10 percent, quantity demanded falls 2.3 percent.
• B)rises by 2.3 percent, quantity demanded falls 2.3 percent.
• C)rises by 20 percent, quantity demanded falls 46 percent.
• D)falls by 10 percent, quantity demanded falls 2.3 percent.
• E)none of the above

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Definitions:

Stream Flow

The movement of water within a river or stream channel, driven by gravity and influenced by rainfall, snowmelt, and terrain.

Average Rate

A mathematical calculation representing the change in a quantity divided by the change in another quantity, commonly used in physics and chemistry.

Average Rate

A calculated value that represents the central or typical value of a set of numbers, dividing the total by the number of values.

Movement

The action or process of changing position or place.