If the Price Elasticity of Demand for a Good Is

question 393

Multiple Choice

If the price elasticity of demand for a good is 10.0,then a 4 percent increase in price results in a

• A) 0.4 percent decrease in the quantity demanded.
• B) 2.5 percent decrease in the quantity demanded.
• C) 4 percent decrease in the quantity demanded.
• D) 40 percent decrease in the quantity demanded.

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Definitions:

MARS Model

A framework identifying four factors (Motivation, Ability, Role perceptions, and Situational factors) that influence individual behavior and performance at work.

Ability

The possession of the means or skill to do something, often referring to natural competencies or developed skills.

Intensity

The degree of strength, force, or concentration with which a particular attribute, emotion, or physical phenomenon is experienced or presented.

Conscientiousness

A personality trait characterized by organization, dependability, and a strong sense of duty.