Suppose That Quantity Demand Rises by 10% as a Result

question 1

Multiple Choice

Suppose that quantity demand rises by 10% as a result of a 15% decrease in price.The price elasticity of demand for this good is

• A)inelastic and equal to 0.67.
• B)elastic and equal to 0.67.
• C)inelastic and equal to 1.50.
• D)elastic and equal to 1.50.

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Definitions:

Set Point

The point at which your “weight thermostat” may be set. When your body falls below this weight, increased hunger and a lowered metabolic rate may combine to restore lost weight.

Ghrelin Levels

The concentration of ghrelin, a hormone that stimulates hunger, produced mainly by the stomach.

PYY Levels

PYY levels refer to the concentration of peptide YY, a hormone involved in hunger regulation and appetite suppression.

Blood Glucose Level

The concentration of glucose present in the blood, important for diagnosing and managing diabetes.