If the Price of a Good Increases by 10 Percent

question 120

Multiple Choice

If the price of a good increases by 10 percent and its quantity demanded drops by 50 percent, the price elasticity of demand is:

• A) 1.0.
• B) 0.2.
• C) −5.0.
• D) 2.0.

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Definitions:

Power

The rate at which work is done or energy is transferred in a unit of time.

Degrees

A unit of measurement for angles, or a measure of temperature.

Crankshaft Rotation

The movement of an engine's crankshaft, converting linear motion from pistons into rotational motion for power.

Volumetric Efficiency

The ratio of air drawn into a cylinder compared to the maximum air that could enter the cylinder. Most gas engines are about 80 to 90 percent volumetrically efficient.