Suppose a One Percent Change in the Price of Oil

question 16

Multiple Choice

Suppose a one percent change in the price of oil causes a −0.02 percent change in the quantity demanded of oil. Thus, −0.02 is the:

• A) price elasticity of demand.
• B) price elasticity of supply.
• C) cross-price elasticity of demand.
• D) income elasticity of demand.

---

Definitions:

Steroids

A type of organic compound that plays many roles in the human body, including as hormones and vitamins.

Catastrophizes

Catastrophizes refers to the tendency to overestimate the potential negative outcomes of a situation or event.

Irrational Process

Mental activities beyond logical reasoning, often influenced by emotions or subconscious thoughts.

Activating Event

In cognitive-behavioral therapy, an external situation or internal mental event that triggers a chain of thoughts, emotions, and behaviors.