Suppose That Quantity Demand Falls by 30% as a Result

question 192

Multiple Choice

Suppose that quantity demand falls by 30% as a result of a 5% increase in price.The price elasticity of demand for this good is

• A)inelastic and equal to 6.
• B)elastic and equal to 6.
• C)inelastic and equal to 0.17.
• D)elastic and equal to 0.17.

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Definitions:

Complex

In psychology, a complex is a core pattern of emotions, memories, perceptions, and wishes in the personal unconscious organized around a common theme, such as power or status.

Persona

The aspect of an individual's character that is presented to or perceived by others; a social facade.

Extraverted Thinking

A cognitive style characterized by decision-making based on external criteria and logically derived solutions.

Logical

Characterized by clear, sound reasoning or a coherent form of thought based on premises which leads invariably to a conclusion.