If the Price Elasticity of Demand for a Good Is

question 145

Multiple Choice

If the price elasticity of demand for a good is 4,then a 12 percent decrease in price results in a

• A)0.33 percent increase in the quantity demanded.
• B)3 percent increase in the quantity demanded.
• C)30 percent increase in the quantity demanded.
• D)48 percent increase in the quantity demanded.

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Definitions:

Corporate Takeovers

The acquisition of one company by another, either through direct purchase or by acquiring a majority stake in the target company.

Foreign Competition

Foreign Competition involves businesses from different countries competing for market share, often leading to innovation and improved quality of goods and services.

Declining Importance

A situation or trend where a particular factor, issue, or economic sector becomes less significant or influential over time.

Sherman Antitrust Act

A landmark federal statute in the United States passed in 1890 that outlaws monopolistic business practices, aiming to preserve fair competition in the marketplace.