Suppose an Increase in Price Decreases Quantity Demanded from 210

question 105

Multiple Choice

Suppose an increase in price decreases quantity demanded from 210 to 190 units. Using the mid-point formula, what is the percentage change in quantity demanded?

• A) 2 = 200 percent
• B) −0.2 = −20 percent
• C) 0.2 = 20 percent
• D) −0.1 = −10 percent

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Definitions:

Domestic Producers

Businesses or individuals within a country that manufacture or offer services within the same national boundaries, often in contrast to foreign producers.

GDP

Gross Domestic Product, a measure of a nation's total economic output and an indicator of its economic health.

Dumping

The sale of a product in a foreign country at prices either below cost or below the prices commonly charged at home.