If a 4 Percent Change in the Price of a Good

question 154

Multiple Choice

If a 4 percent change in the price of a good leads to a 3 percent change in quantity demanded,the price elasticity of demand equals

• A) 1.33.
• B) 0.75.
• C) 4.00.
• D) 3.44.
• E) None of the above answers are correct.

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Definitions:

Stimulus Variable

An environmental, psychological, or physiological factor that can cause a change in the behavior or physiological state of an individual.

Online Testing

The administration of exams or assessments over the internet, allowing for remote evaluation of subjects' knowledge, skills, or psychological traits.

Expensive

Having a high price or cost, often reflecting high quality, rarity, or significant value.

Time-consuming

Describes tasks or activities that require a lot of time to complete, often more than is desired or expected.