When the Price of a Product Is Increased 8 Percent

question 264

Multiple Choice

When the price of a product is increased 8 percent, the quantity demanded decreases 20 percent. The price-elasticity of demand coefficient for this product is

• A)2.5.
• B)25.
• C)0.4.
• D)4.

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Definitions:

Soft Palate

The fleshy, flexible part toward the back of the roof of the mouth, separating the mouth from the pharynx.

Sternocleidomastoid

A muscle in the neck that runs from the sternum and clavicle to the mastoid process of the temporal bone, involved in rotating and flexing the head.

Sternal End

The part of a bone that is located nearest to the sternum, often referring to the end of the clavicle that articulates with the sternum.

Manubrium

The upper section of the sternum (breastbone), providing attachment points for the clavicles and the first pair of ribs.