Suppose the Price of a Good Is $10 and Quantity

question 45

Multiple Choice

Suppose the price of a good is $10 and quantity demanded is 50 units. When price increases to $12, quantity demanded decreases to 40 units. What does this indicate?

• A) The quantity effect is larger than the price effect, indicating that demand is inelastic.
• B) The quantity effect is larger than the price effect, indicating that demand is elastic.
• C) The price effect is larger than the quantity effect, indicating that demand is inelastic.
• D) The price effect is larger than the quantity effect, indicating that demand is elastic.

---

Definitions:

Prospective Employer

An organization or individual that may potentially hire someone for a job position.

Potential Employer

An organization or individual considering hiring someone for a job position.

Leadership Position

A leadership position involves having the authority and responsibility to guide, influence, and direct the activities of others within an organization towards achieving its objectives.

Communication Skills

The abilities used in conveying information effectively and appropriately in various contexts.