If Demand Price Elasticity Measures 2, This Implies That Consumers

question 155

Multiple Choice

If demand price elasticity measures 2, this implies that consumers would

• A) buy twice as much of the product if the price drops 10 percent.
• B) require a 2 percent drop in price to increase their purchases by 1 percent.
• C) buy 2 percent more of the product in response to a 1 percent drop in price.
• D) require at least a $2 increase in price before showing any response to the price increase.
• E) buy twice as much of the product if the price drops 1 percent.

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Definitions:

Cerebrum

The largest part of the brain, responsible for voluntary motor functions, sensory information processing, language, cognitive abilities, and emotional regulation.

Hemispheres

The two halves of the brain (right and left) that control different functions and processes in the human body.

Controls

Variables that are kept constant or monitored in order to assess the effect of experimental treatments in scientific studies.

Axon

A long, slender projection of a nerve cell that typically conducts electrical impulses away from the neuron's cell body.