What Situation Is Occurring If a 1 Percent Decrease in Price

question 9

Multiple Choice

What situation is occurring if a 1 percent decrease in price results in more than a 1 percent increase in quantity demand?

• A)Demand is cross-price elastic.
• B)Demand is price inelastic.
• C)Demand is price elastic.
• D)Demand maintains the status quo.
• E)Demand results in the income effect.

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Definitions:

Prejudice

A preconceived opinion that is not based on reason or actual experience, often resulting in unjust treatment of different categories of people.

Membership

The state of being a member or part of a group, organization, or society.

Power Distance

A measure of how much the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally.

Melting Pot

A metaphor for a society in which many different types of people blend together as one.