If the Price Elasticity of Demand for a Good Is

question 15

Multiple Choice

If the price elasticity of demand for a good is 6,then a 3 percent decrease in price results in

• A)a 20 percent increase in the quantity demanded.
• B)an 18 percent increase in the quantity demanded.
• C)a 2 percent increase in the quantity demanded.
• D)a 1.8 percent increase in the quantity demanded.

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Definitions:

Limited Liability Company

A commercial entity setup that integrates the benefit of paying taxes only once, as seen in partnerships or sole proprietorships, with the advantage of limited personal risk akin to that in a corporation.

Noncorporate Business

An enterprise that operates for profit but is not legally incorporated; examples include sole proprietorships and partnerships.

Limited Partnership

A business organization with one or more general partners who manage the business and assume legal debts and obligations, and one or more limited partners who are liable only to the extent of their investments.

Dissolved

The process of legally terminating the existence of an entity, such as a corporation or partnership, according to the laws of the jurisdiction in which it is registered.