If the Price of a Good Increases by 15% and the Quantity

question 250

Multiple Choice

If the price of a good increases by 15% and the quantity demanded changes by 20%, then the price elasticity of demand is equal to:

• A)0.75.
• B)approximately 0.33
• C)approximately 1.33.
• D)1.

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Definitions:

Short-term Memory

The part of memory where small amounts of information can be held for a short period of time, typically a few seconds to a minute.

Semantic Memory

General knowledge, as opposed to episodic memory.

Thalamus

An area near the center of the brain involved in the relay of sensory information to the cortex and in the functions of sleep and attention.

Limbic System

A complex system of nerves and networks in the brain, involved with instinct and mood. It controls the basic emotions (fear, pleasure, anger) and drives (hunger, sex, dominance, care of offspring).