If the Price Elasticity of Demand Is Equal to 4

question 96

Multiple Choice

If the price elasticity of demand is equal to 4, a 1 percent increase in price will cause the quantity demanded to ____ by ____ percent.

• A) increase; 1/4
• B) decrease; 1/4
• C) increase; 4
• D) decrease; 25
• E) decrease; 4

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Definitions:

Volcanic Ash

Fine particles of rock, minerals, and volcanic glass created during volcanic eruptions and dispersed in the air.

Solidified Lava

Lava that has cooled and hardened, transitioning from a molten state to a solid rock form.

Scoria Cone

A type of volcanic cone formed from fragments of lava thrown out during eruptions, characterized by steep slopes.

Shield Volcano

A type of large volcano with gentle slopes made primarily from the eruption of low-viscosity lava that flows easily.