If the Elasticity of Demand for the Latest American Idol

question 89

Multiple Choice

If the elasticity of demand for the latest American Idol album is 1.4, this means

• A)few substitutes for the American Idol album exist.
• B)a 1% increase in the price leads to a 14% decrease in quantity demanded.
• C)a 10% decrease in the price leads to a 140% increase in quantity demanded.
• D)a 5% increase in the price leads to a 7% decrease in quantity demanded.

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Definitions:

Relays

Electrically operated switches that allow a low-power electrical circuit to control one or more higher power circuits, widely used in various types of electronic and electrical applications.

Clockwise

A circular motion that proceeds in the same direction as a clock's hands, from the top to the right, then down and back to the top.

Counterclockwise

A direction opposite to the way the hands move around a clock, often used to describe the rotation or movement of objects.

Electrical Tape

A type of pressure-sensitive tape used to insulate electrical wires and other materials that conduct electricity, typically made of vinyl.