Exhibit 5-1 Demand Curve

question 141

Multiple Choice

Exhibit 5-1 Demand curve
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If demand price elasticity is 2, consumers would:

• A) buy twice as much of the product in response to a 10 percent decrease in prie.
• B) require a 2 percent drop in price to increase their purchases by 1 percent.
• C) buy 2 percent more of the product in response to a 1 percent decrease in price.
• D) buy twice as much of the product in response to a 1 percent decrease in price.

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Definitions:

Colonial Customs

Practices, behaviors, and traditions that were established and followed during the period of colonial rule in various countries.

Sugar Act

The Sugar Act of 1764 was a law enacted by the British Parliament raising duties on foreign refined sugar imported by the colonies, part of the events leading to the American Revolution.

Importation of Rum

The historical trade of rum, a distilled alcoholic beverage made from sugarcane byproducts, which was part of the triangular trade involving slaves, cash crops, and manufactured goods between the Americas, Africa, and Europe.