An Absolute Price Elasticity of Demand Equal to 0

question 133

Multiple Choice

An absolute price elasticity of demand equal to 0.4 indicates that a

• A) 4 percent increase in price leads to a 10 percent decrease in quantity demanded.
• B) 1 percent increase in price leads to a 4 percent decrease in quantity demanded.
• C) 0.4 percent decrease in price leads to a 1 percent increase in quantity demanded.
• D) 10 percent decrease in price leads to a 4 percent increase in quantity demanded.

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Definitions:

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The period in a person's life following adolescence, characterized by physical, psychological, and social maturity.

Cognitive Abilities

Mental capabilities that include reasoning, memory, attention, and language development, which contribute to acquiring knowledge and understanding.

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