If the Price Elasticity of Demand for a Good Is

question 420

Multiple Choice

If the price elasticity of demand for a good is 0.4,then a 10 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:

System of Exchange

A structured arrangement through which trade is conducted, often involving a medium of exchange such as money.

International Trade

The exchange of goods and services across international borders or territories, which involves the importation and exportation of goods.

Self-sufficiency

The ability of an individual or nation to provide for their own needs without external assistance.

Self-sufficiency

The ability of a country, region, or individual to produce everything they need without relying on external sources.