As the Price of Good X Rises from $1

question 85

Multiple Choice

As the price of good X rises from $1.50 to $1.75 the result is a decrease in the quantity demanded of good X from 650 units to 590 units. The price elasticity of demand for good X is _____________ and total revenue __________ as the price of good X rises from $1.50 to $1.75.

• A)0.63; falls
• B)1.59; rises
• C)1.59; falls
• D)0.63; rises

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Definitions:

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An element that pushes or influences individuals or groups to act or react in a particular way.

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