If the Price Elasticity of Demand Is 2 in Absolute

question 3

Multiple Choice

If the price elasticity of demand is 2 in absolute value, then when the price of Good X rises by 25 percent:

• A) the quantity demanded of Good X rises by 50 percent.
• B) the quantity demanded of Good X falls by 50 percent.
• C) the quantity demanded of Good X rises by 12.5 percent.
• D) the quantity demanded of Good X falls by 12.5 percent.

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Definitions:

Reproduction

The biological process by which new individual organisms are produced by their parents.

Menopause

The period in a woman's life, typically between the ages of 45 and 55, when menstruation ceases.

Infertility Rate

The percentage of the population that is not able to conceive after a year of regular, unprotected sexual intercourse.

Infertility

The inability to conceive a child after trying for at least a year.