If a 4 Percent Increase in the Price of Pepper

question 215

Multiple Choice

If a 4 percent increase in the price of pepper results in a 1 percent decrease in pepper sales, what is the absolute value of the price elasticity of demand for pepper? Is it elastic or inelastic?

• A) 4; elastic
• B) 0.25; elastic
• C) 4; inelastic
• D) 0.25; inelastic

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Definitions:

Experimental Conditions

The controlled aspects of a scientific experiment designed to test the effects of independent variables on dependent variables.

Quantitative

An approach involving the collection and analysis of numerical data to understand patterns, relationships, and outcomes in research.

Qualitative

Involving descriptions or distinctions based on qualities rather than on quantity or measurable criteria.

Extraneous Variables

Variables that are not the focus of a study but may influence its outcome; they are controlled or accounted for to ensure the validity of an experiment.