If the Price Elasticity of Demand for Good a Is

question 126

Multiple Choice

If the price elasticity of demand for good A is -1, then a 1% increase in

• A) consumer income will result in a 1% decrease in the demand for good A.
• B) consumer income will result in a 1% increase in the demand for good A.
• C) the market price of good A will result in a 1% increase in the quantity demanded of good A .
• D) the market price of good A will result in a 1% decrease in the quantity demanded of good A .

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Definitions:

Unit of Measurement

A definite magnitude of a quantity, defined and adopted by convention or by law, that is used as a standard for measurement of the same kind of quantity.

Total Number

The aggregate count of all items or elements in a dataset or collection.

Standard Normal Distribution

A normal distribution with a mean of 0 and a standard deviation of 1, used in Z-tests and other statistical analyses.

Symmetry

A characteristic where an object or design is made up of exactly similar parts facing each other or around an axis.