A Given Percentage Rise in the Price of a Good

question 174

Multiple Choice

A given percentage rise in the price of a good is likely to result in a larger percentage decrease in the quantity of the good demanded

• A)the shorter the passage of time.
• B)the larger the proportion of income spent on it.
• C)the harder it is to obtain good substitutes.
• D)all of the above
• E)none of the above

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Definitions:

Decision Tree

A graphical representation used to make decisions, showing different possible outcomes based on a series of choices.

Strategy

Rule or plan of action for playing a game.

Dominant Strategy

A strategy that yields the best outcome for a player, regardless of what strategies other players select.

Constant-Sum Game

A situation in game theory in which the total gains and losses among participants are always balanced, implying that one player's gain is another's loss.