If the Absolute Value of the Price Elasticity of Demand

question 51

Multiple Choice

If the absolute value of the price elasticity of demand for cell phone service is 3, then if the price of cell phone service increases by 1%, quantity demanded would:

• A)increase by 0.33%.
• B)decrease by 0.33%.
• C)increase by 3%.
• D)decrease by 3%.

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Definitions:

Cards

Refers to thin pieces of plastic or paper, typically rectangular in shape, used for playing games, storing information, or performing transactions.

Clothing Store

A retail establishment that specializes in selling garments and accessories to consumers.

Probability

The measure of the likelihood that a particular event will occur, often expressed as a number between 0 and 1.

Large Shirt

A clothing size specification for shirts indicating a size larger than medium, often with specific measurements for chest width and length.