When the Price Increases by 30% and the Quantity Demanded

question 37

Multiple Choice

When the price increases by 30% and the quantity demanded drops by 10%,the price elasticity of demand is:

• A) non-inelastic.
• B) inelastic.
• C) pro-elastic.
• D) elastic.
• E) non-elastic.

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Definitions:

Experimental Research

A systematic and scientific approach to research in which the researcher manipulates one or more variables to determine their effect on a certain outcome.

Confounding Variables

Factors other than the independent variable that might influence the outcome of an experiment, making it difficult to isolate the effect of the independent variable.

Random Allocation

A method used in experiments where participants are assigned to different groups in a way that ensures each participant has an equal chance of being placed in any group.

Experimenter Bias

A phenomenon where the expectations or beliefs of the researcher unconsciously affect the outcome of an experiment.