A Price Elasticity of -2 Means That a Price Reduction

question 19

Multiple Choice

A price elasticity of -2 means that a price reduction of one percent will result in ________.

• A)a decrease in volume by 2%
• B)a decrease in volume by 20%
• C)an increase in volume by 2%
• D)an increase in market share by 20%
• E)a decrease in market share by 2%

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Definitions:

Remix the Remixer

A creative process that involves taking existing works, often music or digital content, and altering them to produce a new piece, sometimes emphasizing meta-creativity.

Lawrence Lessig

An American academic, attorney, and political activist, known for his work on copyright law, internet policy, and as a proponent of reduced legal restrictions on copyright.

Reinforcement Theory

Theory that suggests that audiences seek messages in the media that reinforce their existing attitudes and beliefs and are thus not influenced by challenging or contradictory information.

Agenda-Setting Theory

Theory that the media can set the public agenda by selecting certain news stories and excluding others, thus influencing what audiences think about.