A Price Elasticity of Demand for a Good or Service

question 31

Multiple Choice

A price elasticity of demand for a good or service of 1.8 tells us that:

• A) the price changes by $1.80 when quantity changes by 1 unit.
• B) quantity demanded falls by 1.8 percent when price rises by 1 percent.
• C) the price rises by 1.8 percent when quantity demanded falls by 1 percent.
• D) quantity demanded falls by 1.8 units when price changes by $1.

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Definitions:

Spontaneous Abortion

A natural loss of a pregnancy before the fetus can survive outside the womb, commonly known as a miscarriage.

In Vitro Fertilization

A medical procedure where an egg is fertilized by sperm outside the body, in a laboratory dish.

First-Trimester Screen

A prenatal test conducted in the first trimester to assess the risk of certain chromosomal abnormalities in a fetus.

Ultrasound Sonography

A diagnostic medical procedure that uses high-frequency sound waves to create images of the inside of the body, commonly used in pregnancy.