When the Price of a Product Is Increased 10 Percent

question 353

Multiple Choice

When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. The price-elasticity-of-demand coefficient for this product is

• A)1.5.
• B)0.15.
• C)0.67.
• D)6.7.

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Definitions:

Stable Attributions

The perception that an individual's behavior is due to fixed, unchanging factors.

External Attribution

The process of attributing the cause of one's own or another's behavior to external factors or situations.

Internal Factors

The influences that originate within an individual or entity, affecting its behavior, decisions, and performance.

External Factors

Elements outside an individual or organization that can influence its performance or outcomes.