If the Price Elasticity of Demand for a Good Is

question 41

Multiple Choice

If the price elasticity of demand for a good is 5,then a 10 percent increase in price results in a

• A)0.5 percent decrease in the quantity demanded.
• B)2 percent decrease in the quantity demanded.
• C)5 percent decrease in the quantity demanded.
• D)50 percent decrease in the quantity demanded.

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Definitions:

Herb

A plant with leaves, seeds, or flowers used for flavoring, food, medicine, or perfume.

Exaptation

An exaptation is a trait that initially carries out one function and is later co-opted for a new function. The original function may or may not be retained.

Tiktaalik

An extinct genus of fish-like tetrapods that represents an early stage of the transition from fish to tetrapods.

Eusthenopteron

An extinct prehistoric fish known for its significance in the study of vertebrate evolution, especially the transition from water to land animals.