When the Price of Tacos Rise 4 Percent,the Quantity Demanded

question 123

Multiple Choice

When the price of tacos rise 4 percent,the quantity demanded decreases 10 percent.What is the price elasticity of demand for tacos?

• A) 40.0
• B) 25.0
• C) 0.4
• D) 2.5
• E) 10.0

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Definitions:

Restrict Entry

The act of limiting access or entrance into a market or sector to control competition and maintain market power.

Total Profit

The sum of net gains, representing the total revenue from transactions minus the total costs associated with those transactions.

Enlarge

To make something larger or expand in size, scale, or scope.

Government Failure

A situation where government intervention in the economy causes more harm than good, leading to inefficient outcomes.