If the Price Elasticity of Demand for a Good Is

question 393

Multiple Choice

If the price elasticity of demand for a good is 10.0,then a 4 percent increase in price results in a

• A) 0.4 percent decrease in the quantity demanded.
• B) 2.5 percent decrease in the quantity demanded.
• C) 4 percent decrease in the quantity demanded.
• D) 40 percent decrease in the quantity demanded.

---

Definitions:

Mortgage Loan

A loan secured by the collateral of specified real estate property that the borrower is obliged to pay back with a predetermined set of payments.

Property

Legal rights over resources such as land, objects, intellectual creations, and more, recognized by law.

Personal Property

Assets or belongings that are movable and not attached to or associated with the land, as opposed to real property like land or buildings.

Judgment Debts

Money that a court has ordered one party to pay another party.