If the Price Elasticity of Demand for Automobiles Is 2

question 142

Multiple Choice

If the price elasticity of demand for automobiles is 2:

• A) a 10 percent decrease in price would result in a 20 percent decrease in quantity demanded.
• B) a 10 percent decrease in price would result in a 20 percent increase in quantity demanded.
• C) a 10 percent increase in price would result in a 20 percent increase in quantity demanded.
• D) a 10 percent increase in price would result in a 10 percent decrease in quantity demanded.

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Definitions:

Triangle Waist Company

A clothing manufacturer in New York City whose factory burned down in 1911, leading to significant reforms in labor laws.

Consequences

Outcomes or effects that result from a previous action or decision, either positive or negative in nature.

Upton Sinclair

An American writer and social activist, famous for his novel "The Jungle" which exposed the harsh conditions of the U.S. meatpacking industry, leading to significant food safety reforms.

The Jungle

A 1906 novel by Upton Sinclair exposing the harsh conditions and exploited lives of immigrants in the United States in Chicago and similar industrialized cities.