If Demand Price Elasticity Measures 2, This Implies That Consumers

question 155

Multiple Choice

If demand price elasticity measures 2, this implies that consumers would

• A) buy twice as much of the product if the price drops 10 percent.
• B) require a 2 percent drop in price to increase their purchases by 1 percent.
• C) buy 2 percent more of the product in response to a 1 percent drop in price.
• D) require at least a $2 increase in price before showing any response to the price increase.
• E) buy twice as much of the product if the price drops 1 percent.

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Definitions:

Opinion

An unsubstantiated belief in or conclusion about what seems to be true according to an individual’s personal thoughts.

Concrete Evidence

Concrete evidence refers to tangible, specific proof that leaves little room for doubt or questioning in the context it is presented.

Value Judgment

An assessment that reflects personal beliefs or opinions about the worth, desirability, or importance of something.

Cultural Norm

Shared behaviors, values, or beliefs that are considered acceptable or standard within a specific culture.