Which of the Following Illustrates Elastic Demand

question 32

Multiple Choice

Which of the following illustrates elastic demand?

• A)A 5% increase in price causes a 2.5% decrease in quantity demanded.
• B)A 5% increase in price causes a 10% 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:

Regular Employees

Individuals who are employed by a company on a permanent basis, typically working a standard work week.

Temporary Employees

Workers hired on a short-term basis to fill temporary needs of an employer, often through staffing agencies.

Local Charity

Local Charity refers to nonprofit organizations that operate within a specific geographic area to provide support and resources for community needs.

Identical Items

Items that are exactly the same in every aspect, such as size, color, quality, or function.