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:

Ecological Pyramid

A graphical representation of the relative energy value at each trophic level. See pyramid of biomass and pyramid of energy.

Trophic Levels

The hierarchical levels in an ecosystem, determined by the feeding position of organisms in food chains.

Energy Loss

The reduction in energy as it moves through the trophic levels of an ecosystem; often described in the context of the inefficiency of energy transfer between levels.

Tertiary Consumers

Carnivores that eat secondary consumers; they are often apex predators in their ecosystems.