If the Price of a Product Increases by 5 Percent

question 217

Multiple Choice

If the price of a product increases by 5 percent and the quantity demanded decreases by 5 percent,then the elasticity of demand is

• A) 0.
• B) 1.
• C) indeterminate.
• D) 5.
• E) 25.

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Definitions:

Compounds

Substances formed by chemically bonding two or more elements together in definite proportions.

Compound

A material composed of at least two elements that are chemically united in a constant proportion.

Soluble

Capable of being dissolved in a solvent, typically referring to the ability of a substance to dissolve in a particular liquid.

Amines

Organic compounds and functional groups that contain a basic nitrogen atom with a lone pair.