Assume That the Price Elasticity of Demand for a Commodity

question 34

Multiple Choice

Assume that the price elasticity of demand for a commodity is 0.20.A 10 percent increase in price will be followed by a:

• A)20 percent increase in the quantity demanded.
• B)2 percent decrease in the quantity demanded.
• C)20 percent decrease in the quantity demanded.
• D)0.2 percent decrease in the quantity demanded.
• E)2 percent increase in the quantity demanded.

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Definitions:

Multidirectionality

In the context of cognitive development, the fact that some aspects of intellectual functioning may improve while others remain stable or decline.

Plasticity

The capacity of the brain to change and adapt structurally and functionally in response to experiences or trauma.

Crystallized Intelligence

The ability to use knowledge, skills, and experience, which generally increases with age, contrasting with fluid intelligence.

Crystallized Intelligence

a form of intelligence that involves the ability to use learned knowledge and experience.