If a 1 Percent Decrease in the Price of a Good

question 106

Multiple Choice

If a 1 percent decrease in the price of a good leads to a 0.50 percent increase in the quantity demanded, the price elasticity of demand for the good equals________ .

• A)0.75
• B)2.0
• C)1.0
• D)0.50

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Definitions:

Costing Measure

A method or metric used to calculate the total costs involved in the production of goods or delivery of services.

Employees Hired

The process of adding new individuals to an organization’s workforce through a systematic recruitment and selection process.

HRM Practices

A set of activities and procedures implemented by the human resources department to effectively manage an organization’s workforce.

Measuring

The process of determining the size, quantity, or degree of something typically through the use of instruments or techniques.