If the Price Elasticity of Demand for Chicken Is 2,a

question 114

Multiple Choice

If the price elasticity of demand for chicken is 2,a 20% decrease in the price of chicken will lead to a:

• A)10% decrease in the quantity demanded of chicken.
• B)10% increase in the quantity demanded of chicken.
• C)40% decrease in the quantity demanded of chicken.
• D)40% increase in the quantity demanded of chicken.

---

Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, with holders typically having voting rights and dividend eligibility.

Paid-in Capital

Funds received by a company from selling its stock directly to investors, not including any stock sales on the open market.

Common Stock

A type of security that represents ownership in a corporation, entitling the holder to vote at shareholders' meetings and receive dividends.

No-par Common Stock

Shares issued without a par value, allowing the company more flexibility in setting their price.