If the Price Elasticity of Demand Is Equal to 4,a

question 113

Multiple Choice

If the price elasticity of demand is equal to 4,a 1 percent increase in price will cause the quantity demanded to _____ by _____ percent.

• A)increase; 0.25
• B)decrease; 0.25
• C)increase; 4
• D)decrease; 25
• E)decrease; 4

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Definitions:

Global/Specific

This term contrasts between broad, overarching concepts (global) and distinct, precise elements (specific).

External Attributions

The process of attributing the cause of one's own or others' behavior to external factors, circumstances, or situations outside one's control.

Control

The ability to sway or guide the actions of individuals or the direction of happenings.

Luck

The concept of experiencing positive, negative, or unexpected outcomes without a clear cause or reason.