If the Absolute Value of the Price Elasticity of Demand

question 91

Multiple Choice

If the absolute value of the price elasticity of demand for tickets to a football game is 2, then if the price increases by 1 percent, quantity demanded decreases by:

• A)0.5 percent.
• B)1 percent.
• C)2 percent.
• D)4 percent.

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Definitions:

Following Forces

Relates to the factors or influences that drive or shape the direction of trends, movements, or behaviors in a society or field.

Mechanistic Organization

A form of organization characterized by rigid hierarchies, high levels of formalization, and centralized decision-making, often seen in traditional, large-scale businesses.

Organic Design

A design philosophy that promotes harmony between the natural environment and human habitation, often emphasizing sustainability and fluidity.

Status Quo

The existing state or condition of affairs, often used in the context of resisting change.