Taco Bell's Economists Determine That the Price Elasticity of Demand

question 213

Multiple Choice

Taco Bell's economists determine that the price elasticity of demand for their tacos is 2.0. So, if Taco Bell raises the price of its tacos by 6.0 percent, the quantity demanded will decrease by ________ percent.

• A) 2.0
• B) 3.0
• C) 6.0
• D) 12.0

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Definitions:

Soviet Union

A socialist state that existed from 1922 to 1991, consisting of multiple republics, and was a major world power during its time.

Containment

General U.S. strategy in the Cold War that called for containing Soviet expansion; originally devised by U.S. diplomat George F. Kennan.

Military Campaign

A series of related military operations aimed at achieving a specific objective within a given time period and geographical area, often part of a larger war or conflict.