If a One Percent Change in the Price of Oil

question 38

Multiple Choice

If a one percent change in the price of oil causes a 0.02 percent change in the quantity demanded of oil,then 0.02 is the

• A) price elasticity of demand.
• B) price elasticity of supply.
• C) cross-price elasticity of demand.
• D) income elasticity of demand.

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Definitions:

Sallie Mae

A corporation that originates, services, and collects student loans in the United States.

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The yield from an investment, including interest or dividends, represented as a percentage of the cost of the investment or its present market worth.

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