What Would Be the Consequences of a 10 Percent Decrease

question 58

Multiple Choice

What would be the consequences of a 10 percent decrease in price for a good whose price elasticity of demand is 5?

• A) A 50 percent decrease in quantity demanded
• B) A 5 percent increase in quantity demanded
• C) A 50 percent increase in quantity demanded
• D) A decrease in quantity demanded by 1/5
• E) An increase in quantity demanded by 1/5

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Definitions:

Psychosexual Stage

A concept in Freudian psychology referring to a series of developmental stages in childhood, each characterized by a focus on pleasure from a particular body area.

Pleasure-Seeking Energies

An inclination towards actions or experiences that result in enjoyment or satisfaction, driven by internal desires.

Reaction Formation

A defense mechanism by which individuals reduce anxiety by taking up the opposite feeling, impulse, or behavior.

Unconscious Impulses

Desires or motivations that reside outside conscious awareness but can influence behavior.