A 4 Percent Increase in the Price of Beer Will

question 65

Multiple Choice

A 4 percent increase in the price of beer will cause a 1 percent decline in the quantity of beer demanded. The demand for beer is:

• A) elastic.
• B) unitary elastic.
• C) inelastic.
• D) elastic at 4 (in absolute value).

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Definitions:

Centralized Communication Network

A structure in which all communication goes through a central point or hub, controlling the flow of information and often leading to efficient decision-making processes.

Simple Tasks

Activities or jobs that require a minimal level of skill, effort, or complexity to complete.

Decision by Majority

A decision-making process in which the option that receives more than half of the votes is chosen.

Restricted Communication Network

A pattern of interaction in which subgroups have limited communication with one another.