If the Elasticity of Demand for the Latest American Idol

question 25

Multiple Choice

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

• A)few substitutes exist.
• B)a 1% increase in the price leads to a 14% reduction 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.

---

Definitions:

Biomedical Therapy

A branch of therapy that involves treatment of psychological disorders through medical means, including medication and surgery.

Prescribed Medications

Medicines that are ordered by a physician or other licensed healthcare professional as part of a treatment plan for a specific health issue or condition.

Selective-serotonin-reuptake-inhibitors

A class of drugs commonly used to treat depression by increasing levels of serotonin in the brain.

Depression

An emotional health problem characterized by continuous sorrow or disinterest in normal pursuits, drastically affecting the flow of daily activities.