If a 6 Percent Decrease in the Price Leads to a 5

question 103

Multiple Choice

If a 6 percent decrease in the price leads to a 5 percent increase in the quantity demanded, the price elasticity of demand is

• A) 0.30.
• B) 0.60.
• C) 0.83.
• D) 1.20.

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Definitions:

Somatic

Relating to or affecting the body, especially as distinguished from the mind or spirit.

Pituitary

A pea-sized gland at the base of the brain that is crucial for regulating vital body functions and general wellbeing through the secretion of hormones.

Endocrine Gland

Endocrine system glands that directly secrete hormones into the bloodstream.

Thyroid

A gland in the neck that produces hormones regulating growth and metabolism.