When the Price of a Good Increases by 50 Percent

question 92

Multiple Choice

When the price of a good increases by 50 percent, quantity demanded decreases by 2 percent. What is the price elasticity of demand?

• A) 1/25
• B) 2
• C) 25
• D) 50
• E) It is impossible to determine from the information given.

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Definitions:

Conflict Resolution

The process of resolving a dispute or disagreement through effective communication, negotiation, or other methods to reach an agreement.

Cooperative Gestures

Actions or behaviors that demonstrate a willingness to work jointly towards mutual or shared goals.

Intergroup Emotion Theory

A psychological theory that explains how individuals' emotions are influenced by their identification with social groups, impacting intergroup interactions.

Ingroup Solidarity

The sense of unity and commitment among members of a group, often leading to mutual support and loyalty.