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:

Drive Theories

Theories in psychology that explain motivation as being driven by the need to fulfill basic biological needs.

Psychogenic Needs

are psychological desires or motivations that drive individual behaviors, often subconscious in nature.

Expectancy Theories

A group of theories that explain how people determine the likelihood of a specific outcome based on their actions, beliefs about their abilities, and the perceived likelihood of achieving their goal.

Need For Power

An individual's desire to control or influence others.