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:

Partnerships

A business structure where two or more individuals manage and operate a business in accordance with the terms and goals set out in a partnership agreement.

Revised Model Business Corporation Act (RMBCA)

A set of laws proposed to standardize the regulation of corporations in the United States, offering a template for state legislatures.

Incorporators

Individuals who participate in the creation of a corporation by preparing, signing, and filing its articles of incorporation with the relevant state authority.

Corporate Shares

Units of ownership interest in a corporation, representing a portion of the corporation's capital.