If a 10% Decrease in the Price of a Good

question 71

Multiple Choice

If a 10% decrease in the price of a good leads to a 20% increase in the quantity demanded, then what is the price elasticity of demand?

• A)½.
• B)2.
• C)10.
• D)20.

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Definitions:

Linear

When used in comparing electric devices or quantities, signifies that one unit is equal to another.

RMS

Root Mean Square, a statistical measure of the magnitude of a varying quantity, commonly used to calculate the effective value of an alternating current.

Peak

The highest point or maximum value in a cycle, often used in the context of waves or signals.

V

Typically represents voltage in electrical contexts, indicating the electrical potential difference between two points.