If the Price Elasticity of Demand for a Product Is

question 182

Multiple Choice

If the price elasticity of demand for a product is 1 in absolute value, and the price elasticity of supply of the same product is 1, what is the predicted percent change in price from a 1 percent increase in demand?

• A) a rise in price of 0.5 percent
• B) a rise in price of 2 percent
• C) a fall in price of 0.5 percent
• D) a fall in price of 2 percent

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Definitions:

Corpus Callosum

The thick bundle of nerve fibers connecting the right and left halves of the brain.

Brain Stem

The part of the brain connecting the spinal cord with the forebrain and cerebrum, controlling basic life functions like breathing, heart rate, and arousal.

Frontal Lobes

The part of the brain located at the front of each cerebral hemisphere, responsible for voluntary movement, speech, and complex cognitive functions.

Frontal Lobes

The part of the brain located in the frontal region, responsible for higher cognitive functions including decision making, problem-solving, and controlling social behavior.