Which of the Following Illustrates Elastic Demand

question 110

Multiple Choice

Which of the following illustrates elastic demand?

• A)A 10% increase in price causes a 5% decrease in quantity demanded.
• B)A 10% increase in price causes a 20% decrease in quantity demanded.
• C)a price elasticity of 0.8
• D)a price elasticity of 1.0
• E)A 10% increase in price causes a 10% reduction in quantity demanded.

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Definitions:

Pancreas

A glandular organ in the digestive and endocrine systems of vertebrates that produces enzymes for digestion and hormones such as insulin for blood sugar regulation.

Anterior Pituitary

The front portion of the pituitary gland, producing and secreting various hormones that regulate several physiological processes including growth, reproduction, and metabolism.

Hypothalamus

A region of the brain responsible for the regulation of certain metabolic processes and other activities of the autonomic nervous system, including temperature control, hunger, and thirst.

Capillary Bed

Networks of small blood vessels that facilitate the exchange of materials (such as oxygen and carbon dioxide) between the blood and tissues.