If the Price Elasticity of Demand for a Product Measures

question 91

Multiple Choice

If the price elasticity of demand for a product measures .45,

• A) this good has many available substitutes.
• B) this good must be a nonessential good.
• C) this good is a high-priced good.
• D) a decrease in price will increase total revenue.
• E) this good is demand price inelastic.

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Definitions:

Choroiditis

Inflammation of the choroid, a vascular layer of the eye, leading to vision problems.

Cycloplegia

Paralysis of the ciliary muscle of the eye, resulting in a loss of accommodation and inability to focus on close objects.

Keratitis

Inflammation of the cornea, the clear outer layer at the front of the eye, potentially caused by infection or injury.

Blepharitis

An inflammation of the eyelid margins, often causing redness, irritation, and itchy eyelids together with dandruff-like scales on the eyelashes.