If the Price Elasticity of Demand for Some Good Is

question 145

Multiple Choice

If the price elasticity of demand for some good is 2.7,a 10% increase in the price results in

• A)a 2.7% decrease in the quantity demanded.
• B)a 2.7% increase in the quantity demanded.
• C)a 27% increase in the quantity demanded.
• D)a 27% decrease in the quantity demanded.
• E)There is not enough information to answer this question.

---

Definitions:

Smog

A type of air pollution, typically a mixture of smoke and fog, that can have harmful effects on health and the environment.

Air Pollution

The presence of harmful or excessive quantities of substances including gases, particles, and biological molecules in Earth's atmosphere which can cause disease, death to humans, damage to other living organisms such as food crops, or the natural or built environment.

Chemical Reactions

Processes in which substances interact to form new products, involving changes in molecular structure and energy.

Exhaust Emissions

The gases and particles released into the atmosphere from an engine or other machinery combustion process.