Suppose the Price Elasticity of Demand for Wine Is 1

question 153

Multiple Choice

Suppose the price elasticity of demand for wine is 1.60.A 12 per cent decrease in price will result in:

• A)a 19.2 per cent increase in the quantity of wine demanded
• B)a 19.2 per cent decrease in the quantity of wine demanded
• C)a 7.5 per cent increase in the quantity of wine demanded
• D)a 7.5 per cent decrease in the quantity of wine demanded

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Definitions:

Ego

In psychology, a component of Sigmund Freud's personality theory, the ego represents the rational part of the psyche that mediates between one's desires and the realities of the external world.

Superego

In Freudian psychoanalysis, the part of the personality that represents internalized ideals and provides standards for judgment.

Magnetic Resonance Spectroscopy

A noninvasive diagnostic technique that allows for the measurement and analysis of chemical concentrations in the brain and other parts of the body.