Suppose the Own-Price Elasticity of Demand for Good X Is

question 159

Multiple Choice

Suppose the own-price elasticity of demand for good X is -5, and that the quantity of good X decreases by 5%.What would you expect to happen to the total expenditures on good X?

• A)increase.
• B)decrease.
• C)unchanged.
• D)neither increase, decrease nor remain unchanged.

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Definitions:

Feature Detectors

Neurons in the brain that are responsible for processing specific features of stimuli, such as lines, edges, or movement.

Cortex

The outer layer of the brain, involved in various high-level brain functions such as memory, attention, perception, cognition, awareness, thought, language, and consciousness.

Optic Nerve

A duo of nerves responsible for carrying visual data from the retina to the brain.

Fovea

A tiny depression in the retina where visual acuity is highest, due to the high concentration of cone cells.