Suppose the Price Elasticity of Demand for Good X Is

question 20

Multiple Choice

Suppose the price elasticity of demand for good X is 1.5.If household income increases by 25%,ceteris paribus,what is the change in quantity demanded for good X?

• A)a 37.5% increase in quantity demanded
• B)a 3.75% increase in quantity demanded
• C)a 0.375% increase in quantity demanded
• D)no change in quantity demanded
• E)There is not enough information to answer this question.

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Definitions:

Female Pelvis

The lower part of the trunk of the human body between the abdomen and the thighs; in females, it includes the structures involved in reproduction.

Ovaries

Female reproductive organs in which eggs are produced and hormones like estrogen and progesterone are secreted.

Mammary Glands

Glands located in the breasts of female mammals that produce milk to feed young offspring.

Pregnancy

The condition or period of being pregnant, where an embryo or fetus develops in a woman's uterus.