If the Price Elasticity of Demand Is 2 in Absolute

question 89

Multiple Choice

If the price elasticity of demand is 2 in absolute value, thenwhen the price of Good X rises by 25 percent:

• A)the quantity demanded of Good X rises by 50 percent.
• B)the quantity demanded of Good X falls by 50 percent.(True Answer )Correct
• C)the quantity demanded of Good X rises by 12.5 percent.
• D)the quantity demanded of Good X falls by 12.5 percent.

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Definitions:

Negatively Reinforced

A process in operant conditioning where a response or behavior is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.

Bathes the Dog

A non-standard term potentially referring to the act of washing a dog as part of pet care routines.

Reinforcer

In behaviorism, any stimulus which strengthens or increases the probability of a specific response or behavior.

Punisher

A stimulus that decreases the likelihood a behavior will be repeated, often by introducing an adverse outcome or removing a positive one.