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:

Amphetamines

A class of stimulant drugs used to treat ADHD and narcolepsy, which can also be abused for their euphoric effects.

Gamma-Hydroxybutyrate (GHB)

A central nervous system depressant often used recreationally for its euphoric effects, but also recognized for its use in treating narcolepsy and potential misuse as a "date rape" drug.

Liquid Ecstasy

A colloquial term for gamma-hydroxybutyrate (GHB), a central nervous system depressant often used recreationally for its euphoric and sedative effects.

Date-Rape Drug

A substance used to incapacitate someone in order to commit a sexual assault.