If Demand Price Elasticity Measures 2, This Implies That Consumers

question 155

Multiple Choice

If demand price elasticity measures 2, this implies that consumers would

• A) buy twice as much of the product if the price drops 10 percent.
• B) require a 2 percent drop in price to increase their purchases by 1 percent.
• C) buy 2 percent more of the product in response to a 1 percent drop in price.
• D) require at least a $2 increase in price before showing any response to the price increase.
• E) buy twice as much of the product if the price drops 1 percent.

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Definitions:

Xerophthalmia

A medical condition characterized by dry eyes, often caused by a deficiency in vitamin A.

Trichiasis

A condition where eyelashes grow inward, potentially irritating the eye.

Emmetropia

The condition of the eye where the optical system is perfectly matched to the length of the eyeball, resulting in sharp vision at all distances.

Visual Acuity

The clarity or sharpness of vision, often measured by the ability to discern letters or numbers at a standardized distance on an eye chart.