A Value of the Absolute Price Elasticity of Demand Equal

question 412

Multiple Choice

A value of the absolute price elasticity of demand equal to 0.6 indicates that

• A) a 6 percent increase in price leads to a 10 percent decrease in quantity demanded.
• B) a 10 percent increase in price leads to a 6 percent decrease in quantity demanded.
• C) a 0.6 percent increase in price leads to a 1 percent decrease in quantity demanded.
• D) a 1 percent increase in price leads to a 6 percent decrease in quantity demanded.

---

Definitions:

Americanized

The process of adopting or adapting to American customs, values, and ways of life.

The Internet

A global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices.

Information

Data that is processed, organized, and contextualized to have meaning and value.

Printing Press

A mechanical device for applying pressure to an inked surface resting upon a print medium, revolutionizing the dissemination of knowledge by making books less expensive and more widely available.