If the Price Elasticity of DVD Recorders Is -0

question 71

Multiple Choice

If the price elasticity of DVD recorders is -0.3 and price increases 20%, what happens to the quantity of DVD recorders demanded?

• A) quantity decreases by 26%
• B) quantity decreases by 6%
• C) quantity increases by 15%
• D) quantity increases by 21%

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Definitions:

Public Education

An education system that is publicly funded through taxation, meant to provide free educational opportunities to students without discrimination.

Economic Organization

The structured arrangement and coordination of economic activities and entities within a society.

Private Good

A product or service that is consumed by an individual without providing any benefit to others, characterized by its excludability and rivalry in consumption.

Economic Efficiency

The optimal allocation of resources to maximize output or outcomes without waste.