Suppose the Price Elasticity of Demand for Beef Is About

question 7

Multiple Choice

Suppose the price elasticity of demand for beef is about 0.6. Other things equal, this means that a 20 percent increase in the price of beef will cause the quantity of beef demanded to

• A)increase by approximately 12 percent.
• B)decrease by approximately 12 percent.
• C)decrease by approximately 32 percent.
• D)decrease by approximately 26 percent.

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Definitions:

BFOQ Defense

Bona Fide Occupational Qualification Defense, a legal principle allowing discrimination in hiring if it is reasonably necessary to the normal operation of that particular business.

Prima Facie

A legal term indicating that upon initial examination, there is sufficient evidence to prove a case unless disproved by opposing evidence.

Title VII

A section of the Civil Rights Act of 1964 that prohibits employment discrimination based on race, color, religion, sex, or national origin.

Quid Pro Quo

A Latin term meaning "something for something," indicating a mutual agreement where each party receives something of value in exchange for something else.