If a 6 Per Cent Decrease in the Price Leads

question 7

Multiple Choice

If a 6 per cent decrease in the price leads to a 5 per cent increase in the quantity demanded, the price elasticity of demand is

• A) 1.20.
• B) 0.60.
• C) 0.30.
• D) 0.83.

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Definitions:

Neurotransmitters

Chemical messengers that transmit signals across a chemical synapse, from one neuron (nerve cell) to another target neuron, muscle cell, or gland cell.

Inhibitory

Pertaining to a neurotransmitter, neuron, or process that decreases the likelihood of a neuron firing and transmitting its message to other neurons.

Hormones

Chemical messengers produced by glands in the body that regulate physiological processes and behavior.

Endorphins

Natural, pain-relieving chemicals produced by the body that promote a sense of well-being and can reduce pain.