The Price Elasticity of Demand for Widgets Is 0

question 204

Multiple Choice

The price elasticity of demand for widgets is 0.80. Assuming no change in the demand curve for widgets, a 16 percent increase in sales implies a

• A) 1 percent reduction in price.
• B) 12 percent reduction in price.
• C) 20 percent reduction in price.
• D) 40 percent reduction in price.

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Definitions:

Paleozoic

An era in Earth's geologic history that occurred from about 541 million to 252 million years ago, characterized by the emergence of early life forms.

Inhospitable

Describing an environment that is harsh, difficult to live in, or unwelcoming to life, often due to extreme conditions.

Correlate

To establish a mutual relationship or connection between two or more things.

Numeric Ages

The dating of geological or archaeological materials based on absolute dating methods, providing specific numbers of years.