If the Price Elasticity of Demand for a Good Is

question 64

Multiple Choice

If the price elasticity of demand for a good is 0.2,then a 3 percent decrease in price results in a

• A)0.6 percent increase in the quantity demanded.
• B)1.5 percent increase in the quantity demanded.
• C)2 percent increase in the quantity demanded.
• D)6 percent increase in the quantity demanded.

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Definitions:

Textile Mill

A factory for the production of fabrics, where raw fibers like cotton and wool are spun, woven, and dyed.

Francis Cabot Lowell

An American industrialist who was instrumental in bringing the Industrial Revolution to the United States, particularly through his development of a vertically integrated textile factory system.

Putting-Out Plan

Also known as the domestic system, it's a manufacturing process where work is distributed to individuals in their homes or small workshops to produce finished goods.

Slaves

People who are legally owned by others and forced to work for them without any personal freedom or rights.