If the Quantity of Bread Demanded Rises 2 Percent When

question 41

Multiple Choice

If the quantity of bread demanded rises 2 percent when the price of bread declines 10 percent, then the price elasticity of demand is:

• A) 0.2.
• B) 2.
• C) 5.
• D) 10.

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Definitions:

Solar Power

Energy from the sun that is converted into thermal or electrical energy for use by humans.

Natural Gas

A fossil fuel consisting mainly of methane, used as a source of energy for heating, cooking, and electricity generation.

Ethanol

A volatile, flammable, colorless liquid commonly used as a biofuel and as the principal type of alcohol found in alcoholic beverages.

Corn

A cereal grain which serves as a staple food in many parts of the world, also used as feed for livestock and for various industrial applications.