When the Price of a Product Is Increased 10 Percent

question 353

Multiple Choice

When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. The price-elasticity-of-demand coefficient for this product is

• A)1.5.
• B)0.15.
• C)0.67.
• D)6.7.

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Definitions:

Behaviourism

A theoretical approach in psychology that focuses on observable behaviors rather than internal processes.

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Behavioural Perspective

An approach in psychology focusing on observable behaviors and the ways in which environment conditions affect them.