Suppose the Price of a Good Is $5 and Quantity

question 134

Multiple Choice

Suppose the price of a good is $5 and quantity demanded is 10 units. When price increases to $6, quantity demanded decreases to 9 units. What does this indicate?

• A) The quantity effect is larger than the price effect, indicating that demand is inelastic.
• B) The quantity effect is larger than the price effect, indicating that demand is elastic.
• C) The price effect is larger than the quantity effect, indicating that demand is inelastic.
• D) The price effect is larger than the quantity effect, indicating that demand is elastic.

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Definitions:

Behavior

The way in which one acts or conducts oneself, especially towards others, governed by psychological and environmental factors.

Brain Hemisphere

One half of the brain, either the left or the right, each responsible for different functions and cognitive processes.

Visual Field

The total area in which objects can be seen in the peripheral vision while the eye is focused on a central point.

Sex Hormones

Chemical substances produced by the body that regulate sexual development, behavior, and reproduction.