If a 50 Percent Increase in the Price of Hula

question 174

Multiple Choice

If a 50 percent increase in the price of hula hoops led to a 10 percent reduction in the quantity of hula hoops purchased, the price elasticity of demand is

• A) 5 and the demand for hula hoops is elastic.
• B) 0.2 and the demand for hula hoops is elastic.
• C) 5 and the demand for hula hoops is inelastic.
• D) 0.2 and the demand for hula hoops is inelastic.

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Definitions:

Illustrators

Nonverbal behaviors or gestures that accompany speech and help convey meaning or emphasize points.

Affect Displays

Visible manifestations of emotion through facial expressions, body movements, and vocal tone.

Regulators

Nonverbal cues or behaviors that control, coordinate, or maintain the flow of communication within an interaction.

Adaptors

Nonverbal behaviors or actions often performed unconsciously in response to stress or discomfort, such as fidgeting or adjusting clothing.