Tara Buys Four Music Cassettes When the Price Is $10

question 213

Multiple Choice

Tara buys four music cassettes when the price is $10 and two cassettes when the price is $14. Her price elasticity of demand is:

• A) 0.
• B) 1.
• C) 2.
• D) 3.
• E) 4.

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Definitions:

Outward Shift

A term often used in economics to describe a situation where a curve, such as the supply or demand curve, moves away from the origin, indicating an increase in supply or demand.

Production Possibility Frontier

A curve depicting the maximum achievable combination of two goods that can be produced with available resources and technology.

Technological Improvements

Advancements or enhancements in technology that lead to more efficient processes, better products, or improved ways of doing things.

Outward Shift

In economics, refers to the movement of a curve away from the origin in a graph, indicating an increase in quantity supplied or demanded due to various factors.