If the Price Elasticity of Demand for a Good Is

question 97

Multiple Choice

If the price elasticity of demand for a good is 0.3,then a 20 percent decrease in price results in a

• A)0.015 percent increase in the quantity demanded.
• B)0.6 percent increase in the quantity demanded.
• C)6 percent increase in the quantity demanded.
• D)66 percent increase in the quantity demanded.

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Definitions:

Poison

A substance that is harmful or lethal to organisms when introduced or absorbed, capable of causing illness or death.

Methadone

A synthetic opioid used medically both as a pain reliever and in the treatment of opioid addiction.

Endorphins

Naturally occurring chemicals in the body that not only alleviate pain but also enhance sensations of joy.

Opiate

A category of drugs derived from the opium poppy (or synthetic analogs) that primarily act as central nervous system depressants and are used for pain relief.