If a 5 Percent Decrease in the Price of a Good

question 42

Multiple Choice

If a 5 percent decrease in the price of a good produces a 5 percent increase in the quantity demanded, the price elasticity of demand is:

• A) perfectly elastic.
• B) perfectly inelastic.
• C) elastic.
• D) inelastic.
• E) unitary elastic.

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Definitions:

Rational Way

Approaching situations and problem-solving based on logical reasoning, facts, and systematic thought processes.

Unconscious Processes

Mental activities outside of conscious awareness, influencing thoughts, feelings, and behaviors according to psychoanalytic theory.

Self-actualization

Attaining one's full talents and possibilities, regarded as an innate desire or motivation present in all individuals.

Self-concept

is the mental and conceptual understanding and persistent view individuals hold about themselves, their abilities, and their characteristics.