If a 10 Percent Increase in the Price of a Good

question 94

Multiple Choice

If a 10 percent increase in the price of a good causes a 10 percent decrease in the quantity demanded of the good,the good has an elasticity of demand equal to ________.

• A) zero
• B) infinity
• C) one
• D) two

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Definitions:

Membership Fees

Fees paid by members to belong to an organization or club, often used to fund operations and activities.

Health Club

A facility that offers health and fitness services, including exercise equipment, fitness classes, and sometimes additional wellness services.

Administrative Expense

Expenses that are not directly tied to the production of goods or services, such as office supplies, salaries of administrative personnel, and rent for office space.

Period Cost

Costs that are not directly tied to the production process and are expensed in the period in which they are incurred.