If the Price Elasticity of Demand for a Good Is

question 458

Multiple Choice

If the price elasticity of demand for a good is 0.25,then a 20 percent decrease in price results in a

• A) 0.0125 percent increase in the quantity demanded.
• B) 4 percent increase in the quantity demanded.
• C) 5 percent increase in the quantity demanded.
• D) 80 percent increase in the quantity demanded.

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Definitions:

American Psychological Association

The largest scientific and professional organization of psychologists in the United States, dedicated to advancing psychology as a science, profession, and means of promoting health, education, and human welfare.

Mary Whiton Calkins

Mary Whiton Calkins was a pioneering American psychologist and philosopher, known for being the first female president of the American Psychological Association.

Positive Reinforcement

A technique in behavior modification that involves rewarding a desired behavior to increase the likelihood of its recurrence.

B. F. Skinner

An influential American psychologist known for his work in developing the theory of behaviorism.