In Measuring Elasticity,if E=2

question 118

Multiple Choice

In measuring elasticity,if e=2.0,then increasing the price of an object by ____ decreases demand by 20%.

• A) 1%
• B) 10%
• C) 50%
• D) 100%

---

Definitions:

Positive Externalities

Benefits that affect parties who did not choose to incur that benefit, often associated with public goods or services, like education and vaccination.

Public Good

A public good is a product that one individual can consume without reducing its availability to another individual and from which no one is excluded.

Rival Good

A type of good where one person's consumption of the good reduces the ability of another person to consume the same good.

Exclusive Good

A product or service that is available only to certain people or groups, often due to high price or scarcity.