How Does Price Elasticity of Demand Appear When Calculated

question 156

Multiple Choice

How does price elasticity of demand appear when calculated?

• A) It is always a negative number, although it is sometimes reported as an absolute value.
• B) It is sometimes a negative number and sometimes a positive number, depending on the magnitude of response.
• C) It is always a positive number because price and quantity are directly related in terms of demand.
• D) It can be a positive number or a negative number, but is always reported as an absolute value.

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Definitions:

Chunk

A unit of information grouped together for easier processing and recall, often used in memory and learning strategies.

Recognition

The identification of something as having been previously seen, heard, known, or experienced.

Fill-in-the-blank Quiz

A type of assessment where participants are required to insert missing words or information into a sentence or paragraph.

George Miller

A cognitive psychologist best known for his theory that the average number of objects an individual can hold in short-term memory is 7 ± 2.