If Consumers Respond to a 10% Price Reduction by Buying

question 62

Multiple Choice

If consumers respond to a 10% price reduction by buying twice as much of a particular good, we would conclude that:

• A)there was excess demand at the original price.
• B)there was excess supply at the original price.
• C)the price elasticity of demand at the original price was greater than one.
• D)the price elasticity of demand at the original price was less than one.

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Definitions:

Ownership Interest

A portion or share in the ownership of assets, such as real estate or a company, affording the holder certain rights like income or control.

General Partners

Individuals or entities that participate in the management of a partnership and have unlimited personal liability for the debts and obligations of the partnership.

Limited Partners

Individuals in a partnership who have limited liability to the extent of their investment in the company and do not participate in day-to-day management.

Limited Partner

A partner in a business venture who doesn't participate in daily operations and whose financial responsibility is capped at their investment level.