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.

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Definitions:

Balance Theory

A psychological theory explaining how individuals maintain harmony and consistency in their relations and attitudes.

Sentiment

An attitude, thought, or judgment prompted by feeling or emotion.

Post-Purchase Dissonance

The feeling of regret or doubt experienced by a consumer after making a significant purchase.

Cognitive Dissonance

A psychological state experienced when an individual holds two or more contradictory beliefs, ideas, or values at the same time, leading to discomfort and prompting a change in beliefs or actions.