If the Absolute Value of the Price Elasticity of Demand

question 153

Multiple Choice

If the absolute value of the price elasticity of demand for a product is 1.5, and the price of a product increased 30 percent, then the quantity demanded will decline by

• A) 45 percent.
• B) 20 percent.
• C) 5 percent.
• D) 10 percent.

---

Definitions:

Natural Selection

A mechanism of evolution where organisms better adapted to their environment tend to survive and produce more offspring.

Foundation

An underlying basis or principle for something, often referring to the solid base upon which structures are built.

Blastocyst

A structure formed in the early development of mammals, consisting of a sphere of cells enclosing a fluid-filled cavity and a cluster of cells from which the embryo develops.

Zygote

The initial cell formed when a sperm cell fertilizes an egg cell, marking the beginning of pregnancy.