Suppose That Quantity Demand Rises by 10% as a Result

question 1

Multiple Choice

Suppose that quantity demand rises by 10% as a result of a 15% decrease in price.The price elasticity of demand for this good is

• A)inelastic and equal to 0.67.
• B)elastic and equal to 0.67.
• C)inelastic and equal to 1.50.
• D)elastic and equal to 1.50.

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Definitions:

NAALC

The North American Agreement on Labor Cooperation, an agreement aimed at improving labor standards and working conditions in Canada, Mexico, and the United States.

Labor Principles

Fundamental guidelines or standards governing fair and ethical treatment of workers, including rights to organize, fair wages, and safe working conditions.

World Trade Organization

An international organization that regulates international trade, aiming to ensure that trade flows as smoothly, predictably, and freely as possible.

International Labor Organization

A United Nations agency that sets international labor standards and promotes rights at work.