Suppose That the Percentage Change in Demand Is 20%, the Price

question 190

Multiple Choice

Suppose that the percentage change in demand is 20%, the price elasticity of demand is 3, and the price elasticity of supply is 2. What is the percentage change in the equilibrium price?

• A) 4%
• B) 5%
• C) 15%
• D) 20%

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Definitions:

Colonial Merchants

Traders and business people operating in the colonial period, often involved in the exchange of goods between the colonies and the mother country.

Sons of Liberty

A group of American patriots during the colonial period who used demonstrations and other methods to protest against British taxation.

Intercolonial Association

An organization or alliance formed between different colonial territories, often for mutual support in matters of trade, defense, or governance.

Crowd Action

Collective behavior of a group of individuals, usually gathered in public, to express a common objective or protest against an issue or policy.