If the Price Elasticity of Demand for a Product Is

question 248

Multiple Choice

If the price elasticity of demand for a product is 2 in absolute value, and the price elasticity of supply for the same product is 1, what is the predicted percent change in price from a 5 percent fall in the supply?

• A) a 1.67 percent fall in price
• B) a 1.67 percent rise in price
• C) a 0.6 percent fall in price
• D) a 0.6 percent rise in price

---

Definitions:

Social Justice

The fair and just relation between the individual and society, measured by the distribution of wealth, opportunities for personal activity, and social privileges.

NASW Code

A set of guidelines and ethical standards defined by the National Association of Social Workers.

Basic Rights

Fundamental entitlements inherent to all human beings, without discrimination, including rights to life, liberty, and personal security.

Human Rights

The fundamental rights and freedoms that every person is entitled to, regardless of nationality, sex, ethnic origin, color, religion, language, or any other status.