Suppose That Quantity Demand Falls by 30% as a Result

question 192

Multiple Choice

Suppose that quantity demand falls by 30% as a result of a 5% increase in price.The price elasticity of demand for this good is

• A)inelastic and equal to 6.
• B)elastic and equal to 6.
• C)inelastic and equal to 0.17.
• D)elastic and equal to 0.17.

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Definitions:

Life Chances

The opportunities individual has for achieving economic prosperity, based on various socio-economic factors, including class background and access to education.

Commodity Markets

Markets where raw or primary products are exchanged, typically involving the trading of goods like grains, gold, meat, oil, and natural resources.

Similar Goods

Products or services that fulfill similar needs or desires among consumers, often considered interchangeable or substitutes for one another.

Power

The ability or capacity to influence or control the behavior of others or the course of events.