If a 50 Percent Increase in the Price of Hula

question 174

Multiple Choice

If a 50 percent increase in the price of hula hoops led to a 10 percent reduction in the quantity of hula hoops purchased, the price elasticity of demand is

• A) 5 and the demand for hula hoops is elastic.
• B) 0.2 and the demand for hula hoops is elastic.
• C) 5 and the demand for hula hoops is inelastic.
• D) 0.2 and the demand for hula hoops is inelastic.

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Definitions:

Cognitive Appraisal

The process by which an individual evaluates and interprets an event or situation that leads to an emotional response.

Work Stress

The experience of stress related to one's job, including challenges and demands that may exceed an individual's resources or abilities to cope.

External Pressures

Forces from outside an organization or individual that influence their decisions, behaviors, or performance, such as market trends, regulatory requirements, or societal norms.

Psychological Response

The mental and emotional reaction of an individual to various stimuli or situations, influenced by their psychological state.