What Is the Price Elasticity of Demand for Eggs If

question 104

Multiple Choice

What is the price elasticity of demand for eggs if a 10 percent increase in the price of eggs results in a 5 percent decrease in the quantity of eggs demanded?

• A) 0.1
• B) 0.5
• C) 1.0
• D) 1.5

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Definitions:

Speeding Ticket

A penalty issued by law enforcement to drivers exceeding the designated speed limit on a roadway, serving as a deterrent against speeding.

Habituate

The process of becoming accustomed to a stimulus or an environment through repeated exposure, leading to decreased responsiveness.

Dishabituate

The process of responding to an old stimulus as if it were new again, usually after a varying stimulus has interrupted a period of habituation.

Distressed

Experiencing anxiety, sorrow, or pain; being in a state of mental suffering.