The Price Elasticity of Demand for a Given Good Is

question 151

Multiple Choice

The price elasticity of demand for a given good is 2.3. This implies that if price

• A)rises by 10 percent, quantity demanded falls 2.3 percent.
• B)rises by 2.3 percent, quantity demanded falls 2.3 percent.
• C)rises by 20 percent, quantity demanded falls 46 percent.
• D)falls by 10 percent, quantity demanded falls 2.3 percent.
• E)none of the above

---

Definitions:

Control Groups

In experimental research, a group of subjects that does not receive the treatment being tested and is used as a benchmark to measure how the other tested subjects respond.

Population

The whole number of people or inhabitants in a country or region.

Sample

The subset of the population that the investigator studies in order to learn about the population at large.

General Psychology Students

Individuals engaged in the study of psychology's fundamental principles, theories, and applications.